Gold edges higher on softer dollar; set to fall for sixth straight month

Friday,   30-Sep-2022   07:41 AM (IST)

Gold prices edged higher on Friday, supported by a pullback in the U.S. dollar, but the Federal Reserve’s commitment to stay on an aggressive rate-hike path kept the metal on track for its sixth straight monthly decline. Spot gold was up 0.2% at $1,663.79 per ounce, as of 0110 GMT. While prices are headed for their biggest weekly gain in seven, it is down 2.8% for the month so far. U.S. gold futures rose 0.3% to $1,673.10. The dollar index held near a one-week low touched on Thursday, making greenback-denominated gold less expensive for overseas buyers.  Fed policymakers will press ahead with raising U.S. borrowing costs to fight soaring inflation, taking in stride both turmoil in global financial markets and early signs their actions are weakening the job market. Although gold is considered a hedge against inflation, a series of aggressive U.S. rate hikes this year has dented on the non-yielding metal’s appeal and lifted the dollar to a two-decade peak. Euro zone economic sentiment fell sharply and by more than expected in September, data showed on Thursday, as confidence dropped among companies and consumers, who are also downbeat about price trends in the coming months. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose to 941.15 tonnes on Thursday from 940.86 tonnes on Wednesday. Spot silver rose 0.2% to $18.86 per ounce, platinum was steady at $865.46 and palladium was up 0.5% at $2,211.59.