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Gold dips on profit taking, dollar strength
Gold dipped Tuesday as traders took profits after the previous session's two-month highs and the dollar lifted from lows against the euro, but trading was muted ahead of a US interest rate decision.
A decision by the Federal Open Market Committee to cut interest rates would augur well for gold.
Spot gold eased to US$833.10/835.10 an ounce at 10:44 GMT, down from $837.80 an ounce in New York late on Monday. The precious metal rose more than 2 percent in that session, hitting a peak of $844.20, its strongest level since October 16.
The dollar firmed a touch against the euro after hitting a two-month low in Asian trade as investors eyed the Fed rates decision.
Gold is often bought as an alternative asset to the dollar and tends to move in the opposite direction to it.
But prices rose in Vietnam going up by VND70,000 to VND17.18 million ($1,022) a tael, or $852 an ounce, at Saigon Jewelry Joint Stock Co., the country’s largest gold trader.
At the gold exchange of Sacombank Jewelry Co., an arm of Sacombank, it rose by VND69,000 to finish at VND17.15 million per tael. Trading volume remained fairly high, with 15,710 taels changing hands, compared with Monday’s 15,020.
The HCMC-based gold trader’s Precious Metal & Gemstone Trading Department expects gold to continue to move up over expectations of an oil price rise after OPEC’s output cut.
OPEC ministers have said a reduction of between one million to two million billion barrels per day is needed to remove excess supply and shore up prices, according to Reuters.
TN, Reuters
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