Gold prices inched lower on Tuesday after falling more than 1% in the previous session, weighed down by an uptick in the U.S. dollar and worries over further U.S. interest rate hikes.
* Spot gold was down 0.1% at $1,777.46 per ounce, as of 0054 GMT, after hitting its lowest since Aug. 8 at $1,772.30 on Monday.
* U.S. gold futures eased 0.2% to $1,793.90 per ounce.
* The dollar rose 0.1% to a more than one-week high against its rivals, making gold more expensive for buyers holding other currencies.
* U.S. single-family homebuilders’ confidence and New York state factory activity fell in August to their lowest levels since near the start of the COVID-19 pandemic, a further sign the economy is softening as the Federal Reserve raises interest rates.
* Fed officials have maintained a hawkish tone and hinted at more rate hikes down the year to tame high inflation.
* Although gold is seen as a hedge against inflation, rising
U.S. interest rates dull non-yielding bullion’s appeal.
* Investors now await minutes from the Fed’s July meeting on Wednesday for clues on further rate hikes.
* Traders were pricing in around a 36.5% chance of a 75-basis-point rate hike by the Fed in September and a 63.5% chance of a 50 bps increase.
* SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.2% to 993.94 tonnes on Monday from 995.97 tonnes on Friday.
* Spot silver slipped 0.2% to $20.21 per ounce, platinum fell 0.4% to $929.29, and palladium was steady at $2,144.52.
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