Gold prices on Tuesday rose to their highest in more than three months as a weaker US dollar and growing inflationary pressure lifted bullion’s appeal as an inflation hedge.
* Spot gold was up 0.2 percent at USD 1,868.89 per ounce by 0101 GMT, after hitting its highest since Feb. 1 in early Asian trade.
* US gold futures rose 0.1 percent to USD 1,869.40 per ounce.
* The dollar teetered near multi-month lows against European currencies. A weaker greenback makes gold more appealing for other currency holders.
* Recent economic readings out of the United States have sparked concerns over rising inflation and raised bets over an earlier-than-expected Federal Reserve rate hike.
* Dallas Federal Reserve President Robert Kaplan on Monday reiterated his view that he does not expect interest rates to rise until next year.
* Gold tends to benefit from a lower interest rate environment as it reduces the opportunity cost of holding non-yielding bullion.
* Investors now await minutes of the US Fed’s last meeting, due on Wednesday, for more cues on the US central bank’s monetary policy.
* Japan’s economy shrank more than expected in the first quarter as the slow vaccine rollout and a resurgence in COVID-19 infections hit consumption.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.7 percent to 1,035.93 tonnes on Monday from 1,028.36 tonnes in the prior session.
* Palladium gained 0.3 percent to USD 2,911 per ounce, silver rose 0.2 percent to USD 28.23 and platinum edged 0.2 percent higher to USD 1,242.27.
First Published: IST