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Gold prices rise as dollar declines By Reuters

© Reuters. Gold bars after being minted in Switzerland on July 13, 2022. Photo: Denis Balibos – Reuters

From Kavya Gudoro

(Reuters) – Gold rose more than 1% on Wednesday, as a slight dip in its safe-haven appeal somewhat revived its safe-haven appeal, although prospects of a sharp interest rate hike kept the non-yielding metal near its 2-1/2-year lows.

By 1458 GMT, it rose 1.3 percent to $ 1650.49 an ounce, up 1.5 percent in US transactions, to compensate for some losses after falling to its lowest level since April 2020 earlier in the session.

US gold futures rose 1.4 percent to $1,658.90.

David Meijer, director of metals trading at High Ridge Futures, said the decline in the dollar and yields “caused gold to move away from those lows”.

“Factors related to Russia and the referendum to annex parts of Ukraine … may have supported the (gold) market as a safe haven,” Major added.

The dollar fell after reaching a new high in two decades, which made bullion less expensive for buyers abroad, while the returns fell.

However, gold has not been able to benefit from the recent stock crash, as higher interest rates have increased the opportunity cost of holding the non-returning precious metal.

As for other precious metals, it rose 1.3 percent to $18.66 an ounce, after falling to a three-week low of $17.94 earlier in the session.

Platinum also rose 0.5% to $852.30, and it rose 1.3 percent to $2112.91.

(Prepared by Doaa Muhammad, Amira Zahran and Rehab Alaa for the Arabic Bulletin – Editing by Ali Khafaji)

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