NEW YORK: Gold prices edged up from a 2-1/2-year low on Monday as the dollar pulled back slightly from its two-decade peak, offering some support to bullion in the face of jitters over rising US interest rates.
Spot gold was up 0.1% at $1,645.00 per ounce by 1400 GMT, after dropping to its lowest price since April 2020 at $1,626.41.
US gold futures eased 0.2% to $1,652.90.
“Gold is not the only game in town when it comes to safety. Money is also going into US Treasuries,” said Bob Haberkorn, senior market strategist at RJO Futures.
The outlook for gold is contingent on the Federal Reserve, Haberkorn said, adding that “it’s kind of a storm that you have to weather right now if you’re a gold investor.” Higher US interest rates dull zero-yielding bullion’s appeal, while bolstering the dollar and bond yields.
Gold has lost more than $400, or over 20%, since scaling above the key $2,000 per ounce level in March as major central banks raised interest rates.
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