© Reuters. Gold bars are displayed at a gold factory in Mendrisio, Switzerland, on July 13, 2022. Photo: Dennis Balibus/Reuters.
(Reuters) – It rose in early Asian trade on Tuesday, supported by a weaker dollar, as investors await US economic data this week to predict the Federal Reserve’s next interest rate move.
It rose 0.4 percent to $1,996.99 an ounce by 0037 GMT, while US gold futures rose 0.3 percent, recording $2,005.50.
It fell 0.1 percent, which makes gold more attractive to buyers holding other currencies.
A report by the Federal Reserve Bank of Dallas on Monday showed that manufacturing activity in Texas contracted in April, highlighting the economic effects of the Fed’s monetary tightening cycle.
Although gold is considered a tool to hedge against inflation and economic uncertainty, high interest rates reduce the attractiveness of the precious metal, which does not yield a return.
CME’s Videowatch service shows that markets expect by 90.5 percent that the Federal Reserve will raise interest rates by 25 basis points at its meeting on May 2-3.
As for other precious metals, it rose in the spot market 0.2 percent to $ 25.22 an ounce, while platinum increased 0.5 percent to $ 1087.70 and rose 0.1 percent to $ 1536.56.
(Prepared by Mahmoud Abdel-Gawad for the Arabic Bulletin)
2023-04-25 01:25:00
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