Gold price trades near 7-week low
Gold prices were flat near a seven-week low on Wednesday, pressured by a rise in the dollar and US Treasury yields on growing expectations of an earlier-than-anticipated interest rate liftoff, Reuters reported.
FUNDAMENTALS
* Spot gold was flat at $1,735.17 per ounce by 0123 GMT. On Tuesday prices fell to their lowest level since Aug. 11 to $1,726.19.
* US gold futures were little changed at $1,735.90.
* The dollar index hovered near a more than 10-month high, touched on Tuesday. The benchmark U.S. 10-year Treasury yields held close to over three-month peak, increasing the opportunity cost of holding non-interest bearing bullion.
* St. Louis Federal Reserve President James Bullard on Tuesday cautioned high inflation may require more aggressive steps by the central bank, including two interest rate hikes in 2022.
* Meanwhile, Fed Chair Jerome Powell said the U.S. economy is still far from achieving maximum employment, a key component of the central bank’s requirements for raising interest rates.
* Silver rose 0.1% to $22.46 per ounce.
* Platinum eased 0.1% to $966.03, while palladium rose 1% to $1,895.47.