(Bloomberg) -- Gold pared a loss after Japan said it had intervened in the foreign exchange market, causing the dollar to give up its gains.
Japan’s Ministry of Finance intervened in FX markets to halt a slide of the yen against the dollar, the country’s top currency official Masato Kanda said Thursday. Bullion had earlier slid as much as 1.1% under pressure from the greenback, which rallied after the Federal Reserve raised interest rates by 75 basis points.
Gold has suffered from the dollar’s relentless rise in recent months, driven by the Fed’s monetary tightening cycle out-pacing others, including the Bank of Japan and the European Central Bank. The metal is still trading close to the lowest in two years, and risks sliding into a bear market.
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Spot gold edged lower to $1,671.82 an ounce at 9:53 a.m. in London. The Bloomberg Dollar Spot Index weakened 0.3%, after earlier rallying to an all-time high. Silver climbed, while palladium and platinum fell.
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