(GoldSilverReports) – Comex Gold prices rose on Tuesday on the back of a weaker dollar, but were stuck in a tight range as investors refrained from taking big bets ahead a possible aggressive U.S. interest rate hike.
Spot gold was up 0.3% at $1,724.45 per ounce, as of 0311 GMT. U.S. gold futures gained 0.3% to $1,723.60 per ounce.
The dollar slipped for a fourth straight session, down 0.2% against its rivals, making gold less expensive for buyers holding other currencies.
“We’re not really seeing a tremendous amount of directional conviction here. It seems like the market is most importantly waiting for the Fed announcement,” said Ilya Spivak, a currency strategist at GoldSilverReports (GSR).
“However, markets over the past two weeks have been consistent with gold picking up and the dollar pulling back, suggesting they are kind of getting comfortable with where the rates outlook they think is going.”
The U.S. Federal Reserve is widely expected to raise interest rates by 75 basis points at the conclusion of its policy meeting on Wednesday. A hike of that magnitude would effectively close out pandemic-era support for the economy.
Expectations around a 100-bp rate hike surged after U.S. annual consumer prices saw their sharpest spike in more than four decades in June. However, traders dialled down those bets following recent weak economic readings.
Meanwhile, the European Central Bank may not be done with big rate hikes after its initial half-point increase last week, Latvian central bank governor Martins Kazaks said in an interview with Bloomberg News.
Rising interest rates increase the opportunity cost of holding non-yielding bullion.
Indicative of sentiment, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.06% to 1,005.29 tonnes on Monday. [GOL/ETF]
Elsewhere, spot silver rose 0.6% to $18.52 per ounce, platinum gained 0.8% to $886 and palladium was steady at $2,009.
सोना स्थिर था क्योंकि निवेशकों ने फेडरल रिजर्व की एक प्रमुख बैठक के समापन तक उलटी गिनती की, जहां बड़ी ब्याज दरों में बढ़ोतरी की उम्मीद है।
सोमवार को 0.5% की गिरावट के बाद सर्राफा 0.2% चढ़ा। ट्रेडर्स फेड की 26-27 जुलाई की सभा में 75 आधार-बिंदु की वृद्धि में मूल्य निर्धारण कर रहे हैं, हालांकि इसके बाद के दृष्टिकोण की भविष्यवाणी करना कठिन है। ब्लूमबर्ग इकोनॉमिक्स के अनुसार, बाजार सहभागियों ने मुद्रास्फीति को कम करने के लिए आवश्यक कसने की मात्रा को कम कर दिया है, फेड की वर्तमान प्राथमिकता, जो कि फेड फंड दर के लिए एक तेज और उच्च पथ की अपेक्षा करता है।