PRECIOUS-Gold holds near 7-week low on robust dollar, Fed taper fears

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Sep 30 (Businesshala) – Gold prices rose on Thursday but hovered near a seven-week low, fueled by a firmer dollar and hopes of the US Federal Reserve closing stimulus measures soon.

fundamentals

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* Spot gold was up 0.2% at $1,729.83 an ounce by 0054 GMT. Prices fell on Wednesday to their lowest level since August 9 at $1,720.49.

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* US gold futures were up 0.4% at $1,729.20.

* The dollar index rose near a one-year high on Wednesday, raising the price of gold for buyers in other currencies.

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* The benchmark US 10-year Treasury yield was slightly lower, reducing the opportunity cost of holding non-interest-bearing bullion. But they remained above 1.5%, a level not seen since late June, which is still a challenge for gold.

* San Francisco Federal Reserve Bank President Mary Daly said on Wednesday that the US central bank will begin to reduce asset purchases by the end of the year, but believes a hike in interest rates will still take a “long run”. way away.

* Philadelphia Fed Bank President Patrick Harker said it would be “soon” time to ease the Fed’s economic stimulus.

* The supply constraints that thwarted global economic growth could get worse, keeping inflation prolonged, even though the current spike in prices is still likely to be temporary, the world’s top central bankers warned on Wednesday. .

*Gold has traditionally been viewed as an inflation hedge, although lower central bank incentives and higher interest rates increase government bond yields, which in turn translates into a higher opportunity cost for gold. Pays no interest.

* Silver rose 0.3% to $21.58 an ounce.

* Platinum rose 0.4% to $954.08 and palladium rose 0.3% to $1,862.23.

Data/Events (GMT) 0600 UK GDP QQ,YYQ2 0645 France CPI (EU Norm) Prelim YY Sep 0900 EU Unemployment Rate Aug 1200 Germany CPI Prelim YY Sep 1230 US GDP Final Q2 1230 US Initial Jobless Claims Weekly (Reporting by Nakul Iyer) in Bengaluru; Editing by Ramakrishnan M.)

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