Gold prices rise

BENGALURU. — Gold prices edged up yesterday as the dollar eased slightly, with investors waiting for US inflation numbers later this week for hints on the pace of monetary tightening by the Federal Reserve.

“Gold appears to be in a holding pattern with the increasing risk that stale long positioning may see traders head for the door until some directional clarity is restored,” said Jeffrey Halley, senior market analyst at OANDA.

Spot gold was up 0,2 percent at $1 259,41 per ounce, as of 0705 GMT. US gold futures for December delivery rose 0,1 percent to $1 265,40 per ounce.

“There aren’t many players in the market, nor is there much incentive (for prices) to move right now, so I think it’s going to be very quiet for the rest of the month,” said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.

“I expect prices to creep higher (in the short term) as the dollar is still weak and that is the prevailing trend.”

Asian shares went flat on Tuesday as disappointing Chinese trade data clouded the otherwise upbeat outlook on global growth, leaving currencies and commodities becalmed in summer doldrums.

The US dollar inched down, not far from multi-month lows touched last week, as investors awaited data due later this week that will offer clues about the extent to which the strengthening labour market is spilling over into inflation.

The dollar index, which tracks the greenback against a basket of six major rivals, slipped slightly on the day to 93,333. A weaker dollar makes bullion cheaper for non-US investors.