Gold up as dollar decline, focus on fed comments

Gold prices rose today, Tuesday, with support from the weakness of the dollar, while investors await more clarity on the position of the Federal Reserve (the US central bank) regarding raising interest rates.

According to Reuters, gold rose in spot transactions by 0.7 percent to $1,753.34 an ounce at 0651 GMT. US gold futures rose 0.7 percent to $1,752.60.

Bullion prices fell by about 1 percent in the previous session, after hawkish statements from US Federal Reserve officials. Council members James Pollard and John Williams said that there is still a long way to go to fight inflation.

The dollar index fell 0.4 percent, making gold cheaper for buyers abroad. Gold is also sensitive to rising interest rates because it increases the opportunity cost of holding non-return assets.

Investors’ focus will now be squarely on Federal Reserve Chairman Jerome Powell, who is scheduled to speak at a conference at the Brookings Institution on Wednesday.

Meanwhile, Chinese police have been deployed in large numbers in Beijing and Shanghai to prevent further protests against COVID-19 restrictions.

In terms of other metals, silver rose in spot transactions 1.4 percent to 21.20 dollars, platinum increased 1.1 percent to 999.54 dollars, and palladium rose 1.5 percent to 1872.88 dollars.