Gold Up on Softer Dollar Ahead of Fed Meeting

  • Commodities News
Gold Up on Softer Dollar Ahead of Fed Meeting
Credit: © Reuters.

By Zhang Mengying – Gold was up on Tuesday morning in Asia over a weaker dollar, but prices were stuck in a tight range as investors shifted focus to a possible U.S. interest rate hike.

Gold futures jumped 0.27% to $1,723.75 by 11:31 PM ET (3:31 AM GMT).

The dollar , which normally moves inversely to gold, edged down on Tuesday morning. The dollar fell for a fourth straight session, down 0.1% against a basket of major currencies, as investors weighed the implications of a looming rate hike by the U.S. Federal Reserve.

The Fed concludes its two-day meeting on Wednesday, where it is widely expected to raise interest rates by 75 basis points.

Elsewhere, The European Central Bank ( ECB ) joined its global peers to bring down soaring inflation and raised interest rates by 50 bps. It is expected to deliver another hike until inflation falls back to its 2% target.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.06% to 1,005.29 tons on Monday from 1,005.87 tons on Friday.

In other precious metals, silver jumped 0.51%. Platinum was up 0.92% while palladium inched up 0.09%.

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