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Gold prices retreat 1% as dollar regains upper hand

Gold prices retreat 1% as dollar regains upper hand

Gold prices retreat 1% as dollar regains upper hand
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By Reuters Sept 29, 2022 2:57 PM IST (Published)

Spot gold fell 1.1 percent to $1,641.10 per ounce, as of 0732 GMT, after rising about 2 percent in its biggest daily gain since March on Wednesday.

Gold prices slipped 1 percent on Thursday, relinquishing some gains from the previous session, as the dollar resumed its rally fuelled by bets for more US interest rate hikes.

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Spot gold fell 1.1 percent to $1,641.10 per ounce, as of 0732 GMT, after rising about 2 percent in its biggest daily gain since March on Wednesday.
US gold futures was down 1 percent at $1,652.50.
"The strong US dollar is putting pressure on gold and commodity prices... The market is seeking certainty and stability that appears to be in short supply," said Michael Langford, director at corporate advisory firm AirGuide.
Denting the greenback-priced bullion, the dollar index raced towards its recent 20-year high, buoyed by renewed pressure on the pound and safe-haven buying due to worries about a global slowdown.
Traditionally seen as a hedge against inflation and economic turmoil, gold prices have fallen 20 percent since scaling above the key $2,000 per-ounce level in March, as rapid US rate hikes diminish the non-yielding metal's appeal.
Benchmark 10-year yields also charged towards a more than a decade high.
Gold was also bound for a sixth consecutive monthly drop.
"Investment demand has been falling... SPDR Gold ETF began the year around 975 tonnes and is currently at 940 tonnes," said Jigar Trivedi, senior analyst currency and commodity analyst at Mumbai-based Reliance Securities.
On the technical front "around $1,620 there is good support. In case it breaks next week, $1,580 area will be the next support," Trivedi added.
Atlanta Fed President Raphael Bostic said on Wednesday his baseline outlook is for the U.S. central bank to hike rates by three-quarters of a percentage point at its November policy meeting and by half a percentage point in December.
Spot silver shed 1.8 percent to $18.55 per ounce, platinum dropped 2 percent to $845.85, while palladium edged 0.2 percent higher to $2,159.35.
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