Gold rebounds as dollar sags

london — Gold rose on Tuesday after hitting a six-week low in the previous session as bargain hunting set in and the dollar fell before speeches by US Federal Reserve officials.

Fed officials have signalled that they plan to continue on their current trajectory of interest rate hikes despite a slow down in inflation. However, investors are sceptical and market pricing shows only a 40 per cent chance of a rise in December.

A huge sell order totalling 1.85 million ounces pushed gold to a six-week low on Monday, although the precious metal ultimately failed to break below the 200-day moving average.

Spot gold rose 0.5 per cent to $1,250.31 per ounce by 0951 GMT. It hit a near six-week low of $1,236.46 on Monday.

US gold futures for August rose 0.4 per cent to $1,251.30 per ounce. — Reuters