Al-Ahed News_follow-up
Gold prices rose in early trading today, Tuesday, as the dollar weakened, while investors’ focus turned to the minutes of this month’s US Federal Reserve meeting, in search of guidance on raising interest rates in the future.
Spot gold rose 0.4 percent to $1,745.13 an ounce at 04:33 GMT. Gold futures contracts in the United States also increased 0.4 percent to $ 1,746.00.
Gold compensated for some of the losses of the previous session, when investors preferred to buy the dollar as a safe haven amid new restrictions to combat “Covid-19” in China.
The dollar’s rise stalled on Tuesday, making gold cheaper for buyers outside the United States.
The Fed’s minutes are scheduled to be released on Wednesday at 19:00 GMT, as most dealers are betting on a 50 basis point rate hike next December.
Gold is considered a tool to hedge against inflation, but high interest rates discourage investment in the precious metal, which does not generate a fixed return.
Spot silver rose 1.4 percent to $21.14 an ounce, platinum rose 1.4 percent to $995.63, and palladium rose 0.7 percent to $1878.00.