Gold prices rose slightly on Wednesday, supported by the decline in Treasury yields, and the search for deals, but the strength of the dollar and fears of a sharp rise in interest rates limited the gains of the precious metal.
Sharjah 24 – Archyde.com:
Gold prices witnessed a slight rise on Wednesday, supported by the decline in treasury bond yields and the search for deals, but the strength of the dollar and fears of a sharp interest rate hike limited the gains.
Spot gold rose 0.1% to $1,702.59 an ounce by 1207 GMT, following falling earlier to its lowest level since September 1, at $1,690.10.
And US futures contracts registered little change, to 1713.30 dollars.
Giovanni Stonovo, an analyst at UBS, said there may be some buying activity below $1,700, but if the US Federal Reserve maintains its hawkish stance, gold prices are expected to fall further.
The European Central Bank is expected to raise interest rates for the second time on Thursday, to rein in record high inflation, at a time when fears of a further rise in inflation and concern of a recession in Europe, with the suspension of Russian gas supplies through a major pipeline.
