Gold Rises Back Towards $1,360 As Talk Of U.S. Rate Hikes Fades

Gold rose on Tuesday as European shares fell 1 % and the dollar hit its lowest in over a month versus the euro, after last week's soft U.S. growth data dented expectations for a near-term interest rate hike.

 

Spot gold was up 0.5 percent at $1,359.17 an ounce at 0940 GMT, while U.S. gold futures for December delivery were up $6.30 an ounce at $1,365.90.

 

Holdings of the world's largest gold-backed exchange-traded fund, SPDR Gold Shares, rose 5.9 tonnes on Monday, its biggest one-day inflow since late June.

 

Gold is highly sensitive to U.S. interest rates, which lift the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.

 

Among other precious metals, platinum rose 0.7 percent at $1,164.74 an ounce on Tuesday, after touching a more than 14-month high of $1,168 earlier in the day. 

 

                       Trading Ideas

  1. Gold trading range for the day is 31389-31685.

  2. Gold prices flitted between small gains and losses as investors looked to take a breather ahead of nonfarm payroll data.

  3. Gold seen support as expectations of a near-term US interest rate hike eased following disappointing U.S. growth figures.

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