By Zhang Mengying
Investing.com – Gold was down on Tuesday morning in Asia. It is hovering near an 11-month low as investors gauge the outlook for further monetary policy tightening and the impact on global growth.
Gold futures edged down 0.19% to $1,706.95 by 12:03 PM ET (0403 GMT). The dollar, which normally moves inversely to gold, edged up on Wednesday morning.
Investors are keeping an eye on the U.S. Federal Reserve’s meeting due on July 26-27 to get a clue on how aggressive the Fed will be in raising interest rates. Bloomberg Economics said that the latest U.S. data reinforce officials’ support for another 75-basis-point hike.
“The Fed might not need to tighten policy as aggressively as markets were initially thinking, but the rate-hiking cycle could last into early next year,” Edward Moya, senior market analyst at Oanda Corp, told Bloomberg. “The dollar is weakening to start the trading week, but this might not be the top, which means gold might struggle to make a move above anywhere close to the $1,750 level.”
In other precious metals, silver and palladium were little changed, while platinum fell 0.2%.