Gold Up as the U.S. Dollar Pauses for Breath
By Zhang Mengying
Investing.com – Gold was up on Wednesday morning in Asia, as the dollar paused for breath after surging to 20-year highs.
Gold futures inched up 0.03% to $1,764.35 by 12:54 AM ET (4:54 AM GMT). The dollar, which normally moves inversely to gold, inched up on Wednesday morning. The dollar index hovered near its highest level since 2002 as renewed recession fears sent investors to the safe-haven currency.
It’s a very modest recovery following a significant fall, and after dropping through support around $1,790-$1,800, gold could now head lower in the medium term, Tiger Brokers chief strategy officer Michael McCarthy told Reuters.
More major central banks hiked interest rates in June than in any month for at least two decades, according to Reuters.
The Reserve Bank of Australia announced on Tuesday an interest rate hike by 50 basis points to 1.35%, in line with Investing.com’s expectations.
Investors now await the minutes from the Fed’s June meeting, due later in the day, which is almost certain to sound hawkish.
In other precious metals, silver fell 0.41%. Platinum dived 0.64% while palladium fell 0.43%.
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