Gold prices lower as dollar firms

Reuters | Published: August 22, 2017 06:09:59 | Updated: October 09, 2017 01:17:59

Gold prices were a touch lower on Tuesday, pressured by an uptick in the dollar, and investors remaining cautious ahead of an annual central banking meeting in Jackson Hole later this week. Spot gold had slipped 0.2 per cent to $1,288.40 an ounce by 0333 GMT, after rising 0.5 per cent in the previous session. US gold futures for December delivery edged down by 0.2 per cent to $1,294.20 per ounce, according to Reuters. The dollar edged up against the yen on Tuesday, while the dollar index, which tracks the greenback against a basket of six major rivals, was steady. Investors are awaiting the Federal Reserve's annual central banking conference in Jackson Hole, Wyoming this week for clues on the outlook on monetary policy. Gold is highly sensitive to rising interest rates because they increase the opportunity cost of holding non-yielding bullion, while boosting the greenback. Spot gold may retest a support at $1,282 per ounce, as its correction from the Aug. 18 high of $1,300.80 has not completed, said Reuters technical analyst Wang Tao. Palladium was 0.5 per cent lower at $934.00 an ounce. Silver and platinum were up 0.1 per cent each at $16.99 and $978.70 an ounce respectively.