GOLD prices edged lower on Wednesday (Aug 7) as the US dollar and Treasury yields firmed, while bets of a September rate cut from the Federal Reserve limited further losses.
Spot gold was down 0.2 per cent at US$2,385.23 per ounce, as at 0155 GMT. US gold futures fell 0.3 per cent to US$2,425.50.
The US dollar recovered ground, making bullion more expensive for other currency holders. While, the benchmark US 10-year Treasury yields edged higher.
Markets see a 70 per cent chance of 50-basis-point cut in September, according to the CME FedWatch Tool. Zero-yield gold tends to thrive in a low interest rate environment.
On Monday, Fed policymakers pushed back against the notion that weaker-than-expected July jobs data means the economy is in recessionary freefall, but also warned that rate cuts will be needed to avoid such an outcome.
SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.37 per cent to 848.06 tonnes on Tuesday from 844.90.
On the geopolitical front, the United States has communicated to Iran and Israel that conflict in the Middle East must not escalate, Secretary of State Antony Blinken said on Tuesday, even as the Pentagon warned that it would not tolerate attacks against its forces in the region.
Spot silver shed 0.2 per cent to US$26.99 per ounce, platinum rose 0.31 per cent to US$914.90 and palladium gained 0.13 per cent to US$875.77. REUTERS
