Gold edges lower as firm US dollar weighs
- Date: 19-Apr-2022
- Source: Zawya
- Sector:Financial Markets
- Country:Middle East
Gold edges lower as firm US dollar weighs
Gold eased on Tuesday after having touched a resistance at the $2,000 per-ounce level in the previous session, as the dollar rose to a two-year high and dented bullion's appeal.
Spot gold was down 0.1% at $1,976.46 per ounce, as of 0229 GMT. U.S. gold futures slipped 0.3% to $1,981.00. Gold climbed to $1,998.10 on Monday, buoyed by safe-haven demand, as the Ukraine crisis dragged on and inflation concerns mounted.
However, the metal later gave up most gains as the dollar and U.S. 10-year Treasury yields firmed. "That ($2,000 per ounce) is quite a critical level, and the fact that gold effectively closed flat on the day means there appears to be a slight hesitancy to push immediately higher," said City Index's senior market analyst Matt Simpson.
"Gold has the ability to overcome the U.S. dollar strength and break above $2,000 possibly over the next week or so."
The dollar firmed to its highest since April 2020 as investors braced for multiple half a percentage-point rate hikes from the Federal Reserve as it seeks to rein in soaring inflation.
While bullion is considered a safe store of value during times of political and economic crises, as well as a hedge against inflation, a firmer dollar