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Gold moves higher as USD swings amid hawkish rate stance

Gold rose in Asia as the US dollar weakened, but was still headed for its fifth straight month of decline.

Bullion rose as traders weighed the Fed’s commitment to keep monetary policy restrictive for some time after Chairman Jerome Powell’s comments at the Jackson Hole annual symposium on Friday. After falling to Monday’s lowest level, it ended with little change.

Powell has indicated that the US central bank will continue to raise interest rates and will likely keep them high to keep inflation down. A stronger dollar and rising U.S. Treasury yields are also weighing on gold.

Minneapolis Fed President Neil Kashkari said on Monday that the sharp decline in the stock market showed investors had received the message that Powell and his colleagues were determined to curb price pressures. rice field.

“People now understand the seriousness of our commitment to bring inflation back to 2%,” he said in an interview. bloombergAn odd lot of podcasts. This week, the Fed plans to step up the unwinding of its nearly $9 trillion balance sheet.

Spot gold rose 0.2% to $1,739.83 an ounce at 8:16 am in Singapore, but was still down 1.5% in August.

The price fell to $1,720.45 on Monday, the lowest level since 27th July. Silver, platinum and palladium rose.

https://gulfbusiness.com/gold-edges-higher-as-greenback-wavers-amid-hawkish-rates-stance/ Gold moves higher as USD swings amid hawkish rate stance

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