As the U.S. dollar took a break after rising to 20-year highs, gold prices went up in Asia on Thursday morning.
Gold futures rose 0.36 percent to $1,742.80 at 12:34 a.m. ET (0434 GMT).The dollar went up on Wednesday morning, even though it usually goes down when gold goes up.
“With momentum going down, dip buyers are trying to catch a falling knife,” said Matt Simpson, a senior market analyst at City Index.
“Bulls might be willing to take a chance at $1,721 or $1,700, but until the dollar tops out, it’s probably just a chance.”
A stronger dollar caused bullion to fall as much as 1.9 percent to $1,731.00 during the previous trading session, its lowest level since September 30.
Ilya Spivak, a currency strategist at DailyFX, told Reuters, “This drop has more room to go.” He also said that if gold falls through support at $1,715 per ounce, it could go below $1,700 to around $1,680.
The minutes from the June meeting of the U.S. Federal Reserve, which were made public on Wednesday, hinted at the possibility of an “even more restrictive” monetary policy to stop long-term inflation. Now, investors expect the Fed to raise interest rates by another 75 basis points in July.
By 0.70 percent. Silver was the only other precious metal to go up. Platinum went up by 0.72 percent, and palladium went up by 0.57 percent.
