Gold edges higher over weakened dollar

Gold extended gains into a third consecutive week, fuelled by a fall in the dollar index, raising investors’ appetite for the precious metal.

Front-month gold futures on New York’s Comex traded at $1,810.60, up 1.5 per cent, while August gold gained 0.6 per cent to settle at $1,810.60 an ounce.

Commenting on gold’s steady rebound, Ed Moya, head of U.S research at online broker, OANDA, said the glittering metal is tentatively stabilizing above the psychological $1,800 level and likely to open the door for a stronger rebound in the short term.

Moya however pointed out there was no certainty about how much impact current inflationary trends in the United States will have on gold, which is generally branded as a hedge against rising pressure prices. Referring to the June update for the Consumer Price Index which reached 5 per cent, a 13-year high, he advised investors to closely await the soon-to-be announced inflation report which is expected to affect gold prices.

The dollar’s decline also triggered bullish results for other precious metals as silver gained 0.84 per cent at $26.19 per ounce, platinum rose 2.27 per cent at $1,098 per ounce while palladium was up 0.26 per cent at $2,817.50 per ounce.