Gold buoyed by weaker dollar, prospects of slower Fed hikes
Gold edged higher Tuesday, taking back some of the ground lost the previous session as investors focused on a weaker dollar and the outlook for future Federal Reserve policy moves.
Gold for February delivery GCG9, +0.23% on Comex rose $1.70, or 0.1%, to $1,251.10 an ounce, while March silverSIH9, +1.30% was up 12 cents, or 0.8%, to $14.725 an ounce.
Gold was “supported by hopes that the Fed could pause its rate-hike cycle sooner than expected and as the dollar slipped after the previous session’s rally,” said Dean Popplewell, vice president of market analysis at Oanda, in a note.
The ICE U.S. Dollar Index DXY, -0.14% a measure of the U.S. currency against a basket of six major rivals, was off 0.3% after rising on Monday. A weaker dollar can be a positive for commodities priced in the unit as it makes them less expensive to users of other currencies.
In other metals trade, January platinum PLF9, +0.97% was up 0.7% to $787.90 an ounce, while March palladium PAH9, +1.97% rose 1.4% to $1,175.20 an ounce.
March copper HGH9, +1.99% gained 3.3 cents, or 1.2%, to $2.753 a pound.
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