Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Prices Inch Higher Amid Weaker Dollar

Published 06/07/2018, 01:51 PM
Updated 06/07/2018, 01:51 PM
© Reuters.

© Reuters.

Investing.com – Gold prices were modestly higher as U.S bond yields fell and the dollar was on track to snap a three-week winning streak but traders remained cautious on the yellow metal ahead of a widely expected U.S. rate hike next week.

Gold futures for June delivery on the Comex divisiSon of the New York Mercantile Exchange rose by $1.40 or 0.11%, to $1,302.90 a troy ounce.

The ongoing slump in dollar index placed the greenback on track to post a weekly loss for the first time in four weeks, supporting gold prices despite investor expectations the Federal Reserve will hike rates at its meeting next week and reveal a more aggressive path for further monetary policy tightening.

Renewed expectations for a faster pace of rate hikes come on the back of a string of bullish U.S. economy data, strengthening investor expectations the U.S. economy was on a solid footing.

According to investing.com's Fed Rate Monitor Tool, 36.4% of traders expect the Federal Reserve to hike rates for a fourth time at its December meeting, up from 29.6% last week.

In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-bearing assets such as bonds.

In other precious metal trade, silver futures rose 0.34% to $16.75 a troy ounce, while platinum futures fell 0.84% to $900.00 an ounce.

Copper rose 0.21% to $3.27.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.