Gold Down as Dollar Inched Up, but Moves Small -Breaking
By Gina Lee
Investing.com – Gold was down on Tuesday morning in Asia. In contrast to gold which tends to move in the opposite direction, Tuesday’s dollar gain was 0.07%. This is after recovering from an almost one-month high during the previous session.
As investors wait for key central banks meetings, the price of gold fell by 0.07% to $1.805.55 at 11:15PM ET (3:15 GMT). Gold is more costly for those who hold other currencies because of a stronger greenback.
Also, benchmark 10-year U.S. Treasury yields rose slightly at 1.6431%, raising non-interest-bearing gold’s opportunity cost.
Investors are awaiting policy decisions at the Bank of Japan (BoJ) and European Central Bank(ECB), both of which will be announced on Thursday. According to Reuters neither central banks will likely announce a change of policy. The ECB could however address how inflationary pressures may affect policy.
Next week, the U.S. Federal Reserve as well as Bank of England will meet. However, interest rate-setter Silvana Tenreyro said she needed more time to judge how the end of the government’s job-saving furlough scheme was affecting the labour market, which is a signal that she sees no urgency to raise rates, according to Reuters.
Other precious metals saw silver fall 0.1% to $24.53 a pound. Platinum declined 0.1% and palladium increased 0.2%.
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