Anasayfa Blog Daily News PRECIOUS-Gold firms on softer dollar ahead of Fed symposium

PRECIOUS-Gold firms on softer dollar ahead of Fed symposium

by AgaBullion
PRECIOUS-Gold firms on softer dollar ahead of Fed symposium


 Aug 25 (Reuters) - Gold prices rose on Thursday, supported by a pullback in the dollar, while investors awaited direction on interest rates by the U.S. Federal Reserve from a key central bankers' meet at Jackson Hole, Wyoming this week.    Spot gold        was up 0.3% at $1,756.64 per ounce, as of 0548 GMT, while U.S. gold futures        gained 0.4% to $1,769.00.

    The dollar        dipped 0.3%, making gold less expensive for overseas buyers. The benchmark U.S. 10-year Treasury yields            held near multi-week highs hit in the previous session.             

    Investors across financial markets are bracing for the U.S. central bank to reiterate its commitment to tame inflation or signal a "pivot" to subdued interest rate hikes. Powell will address the annual global central banking conference at Jackson Hole on Friday.            

    "Will the Fed still be looking at aggressively increasing interest rates and affecting the economy and whether that will be on the back-burner for now ... People want to have clarity on this," said Brian Lan, managing director at Singapore-based dealer GoldSilver Central.

    Monetary policy will be the key factor in the short-term for the gold market, with higher interest rates affecting consumer behaviour, Lan added.

    Rate hikes increase the opportunity cost of holding bullion, which pays no interest, while boosting the greenback.

    The Fed has raised its benchmark overnight interest rate by 225 basis points in total since March to fight sky-high inflation and had noted that further tightening would depend on economic data.

    On the technical front, spot gold may rise into a range of $1,765 to $1,774, having broken a resistance at $1,756 per ounce, according to Reuters technical analyst Wang Tao.

    Among other precious metals, spot silver        rose 0.4% to $19.23 per ounce, platinum  was up 0.5% at $881.34 and palladium        climbed 1.4% to $2,062.62.

 (Reporting by Eileen Soreng in Bengaluru; Editing by Subhranshu

Sahu and Sherry Jacob-Phillips)