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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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