Gold price holds above one month low on softer dollar, weak US data

By: | Published: March 29, 2016 7:04 AM

Gold clung to small overnight gains on Tuesday to hold above a one-month low, supported by a softer dollar and weak US economic data that dented expectations of an immediate hike in US interest rates.

gold, gold price, jewellery stocks, bse sensexBullion was in demand after the dollar fell on disappointing data on the US economy. (Reuters)

Gold clung to small overnight gains on Tuesday to hold above a one-month low, supported by a softer dollar and weak US economic data that dented expectations of an immediate hike in US interest rates.

Spot gold was little changed at $1,221.40 an ounce by 0033 GMT. The metal had fallen to a one-month low of $1,208.15 on Monday, before closing the day up 0.4 percent.

Bullion was in demand after the dollar fell on disappointing data on the US economy.

Data on Monday showed US consumer spending barely rose in February and inflation retreated, suggesting the Federal Reserve could remain cautious about raising interest rates this year even as the labour market rapidly tightens.

Following the weak data, economists slashed their first-quarter gross domestic product growth estimates, while the dollar fell 0.2 percent against a basket of major currencies.

The disappointing outcome dimmed expectations for an imminent hike in U.S. interest rates, which some Fed officials last week said could be as early as next month if the economy maintained its momentum.

Last week, hawkish comments from several Fed officials put investors on guard for the possibility of at least two rates increases this year, triggering a widespread correction across commodities and bolstering the dollar.

Markets will be eyeing a speech by Fed Chair Janet Yellen to the Economic Club of New York. She is due to speak on the economic outlook and monetary policy at 1620 GMT on Tuesday.

For the top stories on metals and other news, click or DATA AHEAD (GMT) 1300 US S&P/Case-Shiller housing index Jan 1400 U.S. Consumer confidence Mar 1620 Federal Reserve Chair Janet Yellen speaks on US economic outlook and monetary policy before an Economic Club of New York luncheon PRICES AT 0033 GMT Metal Last Change Pct chg Spot gold 1221.4 0.75 0.06 Spot silver 15.23 0.013 0.09 Spot platinum 943.5 1.51 0.16 Spot palladium 568.3 0.8 0.14 Comex gold 1221.9 1.8 0.15 Comex silver 15.23 0.04 0.26 COMEX gold and silver contracts show the most active months

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.

Switch to Hindi Edition