Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Up as Dollar Rally Pauses

Published 07/07/2022, 12:38 PM
Updated 07/07/2022, 12:38 PM
© Reuters.

© Reuters.

By Zhang Mengying

Investing.com – Gold was up on Thursday morning in Asia as the U.S. dollar paused for breath after surging to 20-year highs.

Gold futures were up 0.36% to $1,742.80 by 12:34 AM ET (4:34 AM GMT). The dollar, which normally moves inversely to gold, edged up on Wednesday morning.

“With momentum pointing south, dip buyers are effectively trying to catch a falling knife,” said Matt Simpson, senior market analyst at City Index.

“$1,721 and $1,700 are potential levels of support for bulls to consider taking a punt.. but until the dollar tops, it likely is a punt.”

During the previous session, a strengthening dollar pushed bullion down as much as 1.9% to its lowest level since Sept. 30 at $1,731.00.

“This decline has room to continue,” DailyFX currency strategist Ilya Spivak told Reuters, adding that if gold falls through support at $1,715 per ounce, it could head under the $1,700 figure to the vicinity of about $1,680.

The minutes released on Wednesday from the U.S. Federal Reserve’s June meeting suggested the possibility of an “even more restrictive” monetary policy to prevent long-lasting inflation. Now investors have priced in another 75-basis point interest rate hike in July from the Fed.

In other precious metals, silver was up 0.70%. Platinum jumped 0.72%, while palladium gained 0.57%.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.