Wednesday, July 6

Gold prices flat as firm dollar dents appeal


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Gold prices were flat on Monday after

declining in the previous session, as an elevated dollar

continued to make greenback-priced bullion less attractive for

overseas buyers.

FUNDAMENTALS

*Spot gold was little changed at $1,839.79 per ounce

as of 0056 GMT, with the dollar index hovering near its

highest levels in about two decades. US gold futures

were flat at $1,840.30.

* Asian shares were trying to sustain a rare rally, as Wall

Street futures made early gains, perhaps hoping a US holiday

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would provide a break from recent selling, though worries about

global recessions were never far away.

* Federal government offices, the Federal Reserve System,

stock and bond markets in the US will be closed on Monday for

the Juneteenth holiday.

* Gold prices finished the previous week lower, falling 1%

on Friday, as a stronger dollar and interest rate hikes from

major central banks dented the appeal of bullion, which yields

no interest.

* Production at US factories unexpectedly fell in May, the

latest sign of cooling economic activity as the Federal Reserve

Aggressively tightens monetary policy to tame inflation.

* European Central Bank policymaker Klaas Knot said on

Friday the ECB may need to make several 50 basis point rate

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hikes if inflation continues to rise and that he expected about

200 basis points of hikes.

* About 90% of traders and analysts in a Reuters survey

expected China to keep benchmark interest rates unchanged at its

monthly fixing on Monday, as global central bank tightening

limited room for policy maneuver to arrest economic slowdown.

* SPDR Gold Trust , the world’s largest gold-backed

exchange-traded fund, said its holdings rose 1.1% to 1,075.54

tonnes on Friday from 1,063.94 tonnes on Thursday.

* Spot silver firmed 0.1% to $21.68 per ounce,

platinum gained 0.2% to $934.34, and palladium

rose 1.8% to $1,847.36.

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Rashmi Aich)

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