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Gold ticks up on softer dollar, slower rate-hike hopes

Monday,   23-Jan-2023   08:23 AM (IST)

Gold prices edged up during early Asian hours on Monday, aided by a softer dollar and prospects of slower rate hikes from the U.S. Federal Reserve. Spot gold was up 0.1% at $1,929.04 per ounce, as of 0014 GMT. U.S. gold futures were little changed at $1,929.00. The dollar index dipped 0.1%, making greenback-priced bullion cheaper for holders of other currencies.The Fed is set to again slow the pace of its interest rate increases at a Jan. 31-Feb. 1 policy meeting while also signalling that its battle against inflation is far from over. With lower rates translating into lesser returns on interest-bearing assets such as government bonds, investors may prefer zero-yield gold. Physical gold demand in China moderated last week in the run-up to the Lunar New Year holiday, while in Japan and Singapore some consumers sold their bullion to cash in on high domestic prices. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.51% to 917.05 tonnes on Friday. Spot silver gained 0.2% to $24.00 per ounce, platinum fell 0.2% at $1,041.75, and palladium rose 1% to $1,744.86.