SINGAPORE: Gold rose above the $1,800/ounce psychological level in Asian trade on Tuesday to hit a three-week high, as a pullback in the dollar lifted bullion demand, while investors awaited minutes from the US Federal Reserve’s June meeting for clarity on monetary policy.
Spot gold climbed 0.7% to $1,804.50 per ounce by 0652 GMT, after touching its highest level since June 17.
US gold futures jumped 1.3% to $1,806.30 per ounce.
“It’s mainly a weakening US dollar that is boosting gold prices. Gold was sold down heavily after the June FOMC meeting and now that expectations have been priced in, buyers are back to the market,” said Margaret Yang, a strategist at DailyFX. “However, gold’s upside potential might be limited against the backdrop of global hawkish turn in monetary policies. Don’t think prices will recover back to the early June levels anytime soon.”
“Gold prices may be able to hold onto recent gains but staying above the $1,800 resistance may not be in the traders’ radar until the latest minutes of the Fed’s meeting is released,” Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.