By Arundhati Sarkar
(Reuters) – Gold prices edged up on Thursday as the dollar eased slightly and some investors scooped up bargains after sharp losses in the previous two sessions.
Spot gold rose 0.2% to $1,741.75 per ounce by 0843 GMT.
Gold prices have fallen over $300 since March after the U.S. Federal Reserve raised interest rates to rein in soaring inflation, increasing the opportunity cost of holding non-yielding bullion.
U.S. gold futures were up 0.2% to $1,739.80.
“Gold’s recovery this morning is looking like a dead cat bounce… The direction of travel though is clear, that the bears are in control and likely will push lower until physical buyers establish a price floor,” said independent analyst Ross Norman.
“Gold is also seeing some relief from a correction in the U.S. dollar which appears to be topping out, although this is partially offset by modestly higher 10-year Treasury Yields,” Norman added. [USD/] [US/]
Minutes of the Fed’s June meeting – when policy makers tightened by 75 basis points, the most since 1994 – released Wednesday revealed their concern that worsening inflation would erase faith in its ability to control it.
U.S. markets received little solace but more clarity from the FOMC minutes, Jeffrey Halley, senior market analyst, Asia Pacific, OANDA, wrote in a note. He added it is clear the committee members remain “highly focused on culling inflation, even if it was at the expense of a sharp economic slowdown.”
The dollar index ticked down 0.2% after reaching a near 20-year high on Wednesday, lending support to greenback-priced bullion. [USD/]
Traders now await Friday’s broader labour market data, which can provide a fuller picture of the state of the world’s biggest economy.
Spot silver rose 0.6% to $19.29 per ounce, platinum was up 0.1% to $856.74 and palladium climbed 1.3% to $1,929.61.
(Reporting by Arundhati Sarkar and Brijesh Patel in Bengaluru; Editing by Krishna Chandra Eluri)
