(Reuters) – On Tuesday, economic growth worries pushed gold prices up a little bit, but a strong dollar and upcoming interest rate hikes kept gains in check.
At 5:01 GMT, spot gold was up 0.1% to $1,810.45 per ounce. Gold futures in the U.S. went up by 0.6% to $1,812.20.
Stephen Innes, managing partner at SPI Asset Management, said, “While we are stuck in the $1,790 to $1,830 range, gold could be supported by fears of a recession and/or the Federal Reserve softening their policy stance as the market turns away from inflation fears.”
Gold is seen as a safe way to keep your money when the economy is in trouble, like during a recession.
In the past few months, major central banks around the world have been raising interest rates to try to stop inflation from getting out of hand. This has put pressure on the price of gold.
“Overall, gold’s price action is still unimpressive.” “Over the past month, it has set a series of lower daily highs, which suggests that going down is still the weaker way to go,” said Jeffrey Halley, a senior analyst at OANDA.
Halley said that the general drop in U.S. yields seems to be putting off the inevitable drop in the price of non-yielding gold.
When trading started back up on Monday after the long Independence Day holiday weekend, the benchmark 10-year U.S. Treasury yield had risen a little from Friday’s one-month low, but it was still below 3 percent. [US/]
The dollar was close to its highest point in 20 years, and people with other currencies kept buying less gold priced in dollars. [USD/]
Asian stocks also went up a little bit as positive economic data and signs of easing Sino-U.S. tensions helped stop recent sell-offs. However, fears of a global recession and sky-high inflation kept most buyers away. [MKTS/GLOB]
Spot silver went up 1% to $20.16 per ounce, while platinum went down 0.4% to $882.50 and palladium went up 1.1% to $1,943.16.
