Saturday, November 26

Gold dips as dollar fims on Powell’s hawkish tone weigh


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Gold prices fell on Monday, as the dollar

held on to gains following US Federal Reserve Chair Jerome

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Powell’s signal that the central bank will raise interest rates

further to tame sky-high inflation.

FUNDAMENTALS

* Spot gold fell 0.3% to $1,732.17 per ounce, as of

0107 GMT, after falling 1.2% on Friday.

* US gold futures were down 0.3% at $1,745.3.

* The dollar index held close to a two-decade high of

109.29 touched last month, making the bullion expensive for

those holding other currencies.

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* Americans are headed for a painful period of slow economic

growth and possibly rising joblessness as the Fed raises

interest rates to fight high inflation, Powell warned on Friday

at the Jackson Hole central banking conference in Wyoming.

* Higher interest rates increase the opportunity cost of

holding a non-yielding bullion, while boosting the dollar.

* Central banks around the world risk losing public trust

and must now act forcefully to combat inflation, even if that

drags their economies into a recession, European Central Bank

board member Isabel Schnabel said on Saturday at the symposium.

* Gold premiums in top consumer China jumped last week to

their highest since October as a fall in global prices

encouraged purchases, while demand cooled in India as buyers

waited for a bigger price drop.

* Speculators cut their net long COMEX gold position by

15,910 contracts to 30,326 in the week to Aug. 23, data from the

US Commodity Futures Trading Commission showed.

* Spot silver fell 1% to $18.69 per ounce, platinum

slipped 1% to $855.27 and palladium was flat at

$2,110.19.

DATA/EVENTS (GMT)

0130 Australia Retail Sales MM Final July

0500 Japan Leading Indicator Revised June

(Reporting by Eileen Soreng in Bengaluru; Editing by Rashmi

Aich)



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