The spot gold price was recently quoted at $1,318.90-1,319.35 per oz, up by $1.25 from the previous trading day’s close. Trade has ranged from $1,316.23-1,319.55 per oz so far today.
- Gold prices staged a minor recovery in the early session on Tuesday, with a slightly weaker dollar providing support.
- The dollar index was at 92.23 as of 10.15am Shanghai time, compared with a reading of 92.05 at roughly the same time on Monday.
- The index had reached as high as 92.4 on Monday, supported by rising expectations of a March interest rate hike by the US Federal Reserve (Fed).
- Weakness in the Euro had also lent support to the dollar.
- “The euro gave back some ground as last week’s disappointing euro area inflation data weighed on short-term sentiment against the backdrop of rising expectations that the Fed will tighten again in March,” ANZ Research noted on Tuesday.
- “Gold prices edged a bit lower overnight after the US dollar took back some lost ground from the EUR, but as the USD mini-correction ran out of steam, gold prices quickly retraced earlier loses,” Stephen Innes with Oanda said on Tuesday.
- “Given the very tight current correlation between gold and USD coupled with relatively sparse news flow, bullion dealers will be keying on Fed speak to provide a catalyst for the dollar ahead of Friday's key US CPI, but so far the Fed rhetoric as contributed few sparks,” Innes added.
Currency moves and data releases
- In the other precious metals, the spot silver price was up by $0.035 at $17.110-17.130 per oz. Platinum declined by $1 to $962-968 per oz, while palladium was increased by $6 to $1102-1107 per oz.
- On the Shanghai Futures Exchange, gold for June delivery was recently at 280.55 yuan ($43.17) per gram, and the June silver was at 3,896 yuan per kg.
- The dollar index dipped by 0.1% to 92.23 as of 10.15am Shanghai time.
- The dollar is in recovery mode, supported by expectations of a March interest rate increase by the US Federal Reserve.
- In equities, the Shanghai Composite Index was up by 0.08% to 3412.24 as of 11.30 am Shanghai time.
- In other commodities, the Brent crude oil spot price edged $0.31 higher to $68.17 per barrel as of 11.50am Shanghai time and the Texas light sweet crude oil spot price declined by $0.01 to $62.19 per barrel.
- The economic agenda is light today with the European Union’s unemployment rate and US data that includes the NFIB small business index, JOLTS job openings and IBD/TIPP economic optimism of note.
- China’s consumer and producer price indices are also expected early on Wednesday morning.