Commodities and Futures News

Gold Up as Dollar Rally Pauses

2022.07.07 07:46

Gold Up as Dollar Rally Pauses
Gold Up as Dollar Rally Pauses

 

Gold was up on Thursday morning in Asia as the U.S. dollar paused for breath after surging to 20-year highs.

Gold futures were up 0.36% to $1,742.80 by 12:34 AM ET (4:34 AM GMT). The dollar, which normally moves inversely to gold, edged up on Wednesday morning.

“With momentum pointing south, dip buyers are effectively trying to catch a falling knife,” said Matt Simpson, senior market analyst at City Index.

“$1,721 and $1,700 are potential levels of support for bulls to consider taking a punt.. but until the dollar tops, it likely is a punt.”

During the previous session, a strengthening dollar pushed bullion down as much as 1.9% to its lowest level since Sept. 30 at $1,731.00.

“This decline has room to continue,” DailyFX currency strategist Ilya Spivak told Reuters, adding that if gold falls through support at $1,715 per ounce, it could head under the $1,700 figure to the vicinity of about $1,680.

The minutes released on Wednesday from the U.S. Federal Reserve’s June meeting suggested the possibility of an “even more restrictive” monetary policy to prevent long-lasting inflation. Now investors have priced in another 75-basis point interest rate hike in July from the Fed.

In other precious metals, silver was up 0.70%. Platinum jumped 0.72%, while palladium gained 0.57%.

Gold Up as Dollar Rally Pauses

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