GOLD, SILVER RECOUP LOSSES

GOLD PRICES edged up from a twoand-a-half year low yesterday as the dollar pulled back slightly from its two-decade peak, offering some support to bullion in the face of jitters over rising US interest rates.

Spot gold rose 0.1% at $1 645 an ounce by 4pm, after falling to its lowest price since April 2020 at $1 626.41 an ounce.

US gold futures retreated 0.2% to $1 652.90 an ounce.

“Gold is not the only game in town when it comes to safety. Money is also going into US Treasuries,” said Bob Haberkorn, senior market strategist at RJO Futures.

The outlook for gold is contingent on the Federal Reserve, Haberkorn said, adding that “it’s kind of a storm that you have to weather right now if you’re a gold investor”.

Higher US interest rates dull zero-yielding bullion’s appeal, while bolstering the dollar and bond yields.

Gold has lost more than $400, or over 20%, since scaling above the key $2 000 an ounce level in March as major central banks raised interest rates.

However, while the prospect of more rate increases dampens sentiment towards gold in the present, some analysts say bullion still remains supported by recession risks and geopolitical tensions.

“We’ve got dollar strength and an increase in the US Treasury yields, which typically would push gold lower. However, broadly speaking, gold isn’t doing too badly in the scheme of things,” said Ross Norman, an independent analyst.

Offering some support to gold, the dollar index pulled back after rising again to its highest level since 2002.

Elsewhere, spot silver rose 0.5% to $18.94 an ounce, after touching its lowest price in more than two weeks earlier in the session.

Platinum soared 1.1% to $863.09 an ounce, and palladium added 0.2% to $2 070.30 an ounce. I Reuters