🎈 Up Big Today: Find today's biggest gainers (some over 50%!) with our free screenerTry Stock Screener

PRECIOUS-Gold hits 1-wk high as dollar sags on Trump's Fed attack

Published 2018-08-21, 08:45 p/m
PRECIOUS-Gold hits 1-wk high as dollar sags on Trump's Fed attack
XAU/USD
-
DX
-
GC
-
GLD
-
POLYP
-
HARJ
-
DXY
-

BENGALURU, Aug 22 (Reuters) - Gold prices hit a fresh one-week high on Wednesday amid ongoing weakness in the dollar following U.S. President Donald Trump's attack on the Federal Reserve over interest rates.

FUNDAMENTALS

* Spot gold XAU= edged up 0.2 percent to $1,197.66 at 0030 GMT, its highest since Aug. 14.

* U.S. gold futures GCcv1 were up 0.3 percent at $1,203 an ounce.

* The sell-off of the dollar continued through early Wednesday, following U.S. President Donald Trump's criticism of the chairman of the Federal Reserve for raising interest rates in an interview with Reuters on Monday. Trump's criticism comes as investors are anticipating the release of the Fed's August policy meeting minutes on Wednesday and the bank's annual symposium at Jackson Hole, Wyoming, later this week.

* Gold is highly sensitive to rising U.S. rates as it increases the opportunity cost of holding non-yielding metal while boosting the dollar.

* The dollar index .DXY , which measures the greenback against a basket of currencies, was down about 0.1 percent on Wednesday, after touching its lowest since Aug. 9 at 95.08, in the previous session. USD/

* A weaker dollar generally boosts the price of dollar-denominated gold.

* Markets were also focused on a U.S.-China trade meeting this week, but Trump said on Monday he did not expect much progress from talks with Beijing. Holdings of SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, fell 0.46 percent to 768.70 tonnes on Tuesday from 772.24 tonnes on Monday. GOL/ETF

* South Africa's National Union of Mineworkers (NUM) said on Tuesday that wage negotiations in the gold sector were at a deadlock and the union had declared a dispute, a move that is one step short of a strike. Switzerland's gold imports and exports fell in July, data from the Swiss customs bureau showed. South Africa's Harmony Gold HARJ.J reported a 43 percent fall in annual earnings on Tuesday, hurt by impairments and a loss relating to debt denominated in U.S. dollars, and a setback to its safety record. Russian gold and silver producer Polymetal POLYP.L said on Tuesday its net income rose 46 percent year-on-year to $175 million in the first half of 2018 due to an increase in production and higher sales.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.