Gold edges up as economic worries lend support
Highlights:
- Asian shares firm, growth fears cap gains
- Dollar nears 2-decade peaks
Gold prices rose marginally on Tuesday, buoyed by economic growth concerns, although an elevated dollar and impending interest rate hikes kept gains in check.
Spot gold was up 0.1% to $1,810.45 per ounce at 0501 GMT US gold futures gained 0.6% to $1,812.20.
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"While we are stuck in the $1,790 to $1,830 range, gold could be supported on recession worries and possibly the Federal Reserve softening their policy stance as the market pivots from inflation concerns," said Stephen Innes, managing partner at SPI Asset Management.
Gold is seen as a safe store of value during times of economic crises, like a recession.
Bullion has been pressured in the past few months by major central banks around the world moving to hike interest rates in their attempt to tame runaway inflation.
"Overall, gold's price action is still underwhelming, setting a series of lower daily highs over the past month, suggesting the downside remains the weaker path of travel," OANDA senior analyst Jeffrey Halley said.
The general move lower by US yields seems to be delaying the inevitable correction lower in prices of non-yielding gold, Halley said.
Resuming trade after a weekend extended by the Independence Day holiday, benchmark US 10-year Treasury yields recovered slightly from Friday's one-month low, but remained below 3%.
The dollar hovered near a two-decade peak, and continued to chip away at demand for greenback-priced gold among buyers holding other currencies.
Meanwhile, Asian shares inched up as positive economic data and hints of easing Sino-US tensions offered some respite to the recent sell-offs, though persistent fears about a global recession and sky-high inflation kept most buyers at bay.
Spot silver gained 1% to $20.16 per ounce, while platinum fell 0.4% to $882.50, and palladium climbed 1.1% to $1,943.16.
