Gold prices rise as US dollars dip

Joy Onuorah
Joy Onuorah
Gold prices rise, US dollar weakens as European markets reopen

Gold prices edged higher on Tuesday, despite the presence of higher bond yields and waning fears of a banking crisis, Reuters reported.

The weaker US dollar lent support to the safe-haven asset, with spot gold up by 0.3% to $1,961.70 per ounce at 10:25 a.m. EDT.

Meanwhile, US gold futures rose 0.5% to $1,963.70. The fall in the US dollar index by about 0.2% made gold cheaper for holders of other currencies.

However, senior analyst at Kitco Metals, Jim Wyckoff, noted that buying interest in gold was still limited by the apparent stabilization of the banking crisis.

Wyckoff said that the marketplace is still tentative as regulators have vowed to review their rules and procedures after the unexpected failures of regional lenders Silicon Valley Bank and Signature Bank.

This would keep risk appetite contained for at least the next few weeks until the crisis is resolved.

Wall Street’s main indexes were flat at the open, following a three-day rally in the S&P 500 and the Dow.

In the near-term, gold prices may fall to $1,933, but the head of commodity strategy at Saxo Bank, Ole Hansen, said that the outlook for gold remains bullish. He cited the fast-approaching peak in US rates and the risk of hitting a recession in the coming months.

At the same time, spot silver was trading nearly flat at $23.09 per ounce, while platinum dropped 0.9% to $962.53. Palladium was down 0.2% to $1,406.07.

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