• Gold prices climbed on the back of a weaker dollar on Tuesday, extending gains into a third session, after U.S. President Donald Trump said he was “not thrilled” with the Federal Reserve for raising interest rates.
• Spot gold was up 0.3 percent at $1,193.92 an ounce at 0355 GMT after gaining 0.5 percent in the previous session.
• U.S. gold futures were up 0.5 percent at $1,200.6 an ounce.
• Trump’s remarks are having a negative effect on the U.S. dollar, and in turn, lending support to gold prices, said Stephen Innes, APAC trading head, OANDA.
• The U.S. central bank has raised rates twice this year and targets two more hikes, with the next one slated in September. However, Atlanta Fed President Raphael Bostic on Monday said he was maintaining his expectation for one more interest rate hike this year.
• Meanwhile, investors looked ahead to the release of Fed’s August meeting minutes on Wednesday and the bank’s annual policy symposium at Jackson Hole later this week.
• Spot gold may end its current bounce around a resistance at $1,206 per ounce, and then resume its downtrend, Reuters technicals analyst Wang Tao said.
• Among other precious metals, spot silver climbed 0.3 percent to $14.75 an ounce. Platinum rose 0.6 percent to $798.50, while palladium remained steady at $910.50.
• “On the precious metals side, the renewed dollar strength was enough to see speculators continue piling on bearish bets, with record gold, silver and platinum short positioning growing week by week, while all three metals are net short at the same time for the first time since 2001,” the strategists stated.
• The Federal Reserve’s current monetary policy will be in focus this week as central bankers from around the globe converge in Jackson Hole Wyoming for their annual retreat and this could be good news for gold investors, according to one global precious metals dealer.
While gold has been at the mercy of surging U.S. dollar, analysts at Degussa expect this trend to soon reverse due to the Federal Reserve.
In a report published last week, the analysts said that hawkish Fed monetary policy, which is strengthening the U.S. dollar can’t last because it is putting the global economy at risk.
Reference: Kitco,Reuters
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