Spot gold was down 0.2% at $1,850.40 an ounce, 0240 GMT, after hitting its highest level since May 9 at $1,865.29 on Monday. US gold futures were flat at $1,848.20.
The dollar, a safe haven, recovered some of its losses overnight. A stronger dollar makes bullion more expensive for overseas buyers. [USD/]
“Dollar weakness has allowed gold to climb back above its 200-day average…and we’re not yet convinced the greenback has bottomed out,” said analyst Matt Simpson. main market of City Index.
Federal Reserve Bank of Kansas City President Esther George said on Monday she expects the U.S. central bank to raise its target interest rate to about 2% by August, further action depends on how supply and demand affect inflation.
Bullion, considered a safe store of value in times of economic crisis, tends to become less appealing to investors when US interest rates rise, as it yields nothing.
“Gold continues to look oversold to me and the daily close (Monday) above the 200-day average is constructive for the bulls,” Simpson said.
SPDR Gold Trust, the largest gold-backed exchange-traded fund, said its holdings rose 0.44% to 1,068.07 tonnes on Monday from 1,063.43 tonnes on Friday. [GOL/ETF]
Benchmark 10-year US Treasury yields declined, limiting losses from zero-yielding gold. [US/]
Spot silver fell 0.3% to $21.71 per ounce, and platinum fell 1.3% to $946.00, while palladium edged up 0.1% to 1994, $50.
Russian company Nornickel cut its estimate of the global palladium market deficit in 2022 on Monday due to weaker demand from the auto industry amid the Ukraine crisis and a slow recovery in the chip market after. the shortage.