Gold slips from two-month peak as dollar regains footing

Gold slips from two-month peak as dollar regains footing

Gold prices edged lower on Tuesday, after hitting a more than two-month high in the previous session, as a stronger dollar and optimistic comments from U.S. Federal Reserve Chairman Jerome Powell on the economy weighed on the metal’s safe-haven appeal.

FUNDAMENTALS

*Spot gold was down 0.2% at $1,789.02 per ounce by 0131 GMT. The metal touched its highest since Feb. 25 at $1,797.75 on Monday.

*U.S. gold futures fell 0.2% to $1,788.80 per ounce..

* The dollar index was up 0.1% against its rivals, making gold more expensive for other currency holders.

*The U.S. economy is doing better, but is “not out of the woods yet,” Powell said on Monday in remarks that flagged an upcoming central bank study documenting the disproportionate blow suffered by the less educated and working parents during the coronavirus downturn.

*U.S. manufacturing activity grew at a slower pace in April, restrained by shortages of inputs as rising vaccinations against COVID-19 and massive fiscal stimulus unleashed pent-up demand.

*The Bank of Canada’s signal that it may begin hiking interest rates before the Federal Reserve has lit a fire under the Canadian dollar, but past tightening cycles show faster liftoff may not be sustained.

*South Korea’s consumer inflation accelerated to a near four-year high in April, mainly due to a low base in 2020 and rising oil and agricultural prices. Data from the Asian country is a closely watched indicator as it is considered a bellwether for global trade.

*More than 153.02 million people have been reported to be infected by the novel coronavirus globally and 3,344,235​ have died, according to a Reuters tally.

*Palladium rose 0.2% to $2,976.83 per ounce, after scaling an all-time high of $3,007.73 per ounce on Friday.

* Silver was down 0.5% at $26.74 per ounce, while platinum dipped 0.1% to $1,228.94.

-Reuters

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