Gold Up, Near Two Week High as Dollar Stabilizes

© Reuters.

By Gina Lee

AiVIF.com – Gold was up on Tuesday morning in Asia. The dollar was up, stabilizing after its fall during the previous session that helped boost the yellow metal to its highest point in two weeks.

Gold futures edged up 0.17% to $1,850.94 by 11:10 PM ET (3:10 AM GMT), after hitting its highest level since May 9 at $1,865.29 on Monday.

The dollar, which normally moves inversely to gold, was up on Tuesday after falling to a one-month low in the previous session. Benchmark U.S. 10-year Treasury yields also eased.

The U.S. Federal Reserve could hike its target interest rate to about 2% by August 2022, with further action dependent on how both supply and demand are affecting inflation, Kansas City Fed President Esther George said on Monday.

Investors now await the minutes from the Fed's last meeting, due on Wednesday. The Reserve Bank of New Zealand will hand down its policy decision on the same day, with the Bank of Korea following on Thursday.

Asian Pacific shares were mostly down on Tuesday, after an early slide in U.S. stock futures cooled a rally in U.S. shares. The euro was near a one-month high, with bets increasing that the European Central Bank will hike its interest rate in July 2022.

SPDR Gold Trust (P:GLD) said its holdings rose 0.44% to 1,068.07 tons on Monday, up from 1,063.43 tons on Friday.

In other precious metals, silver edged down 0.2% platinum eased 0.3% to $956.10, and palladium edged up 0.2%.

Russian palladium mining and smelting company Nornickel on Monday slashed its estimate for the global palladium market deficit in 2022 to 100,000 troy ounces. This is due to lower demand from the car industry amid the war in Ukraine and the slow recovery of the chip market from a shortage.