Gold extends gains to 11-day high

 

The yellow metal extended gains on Tuesday, with spot climbing to a more than one-week high at the beginning of the New York session as last Friday’s NFP report continued to take its toll on the dollar, diminishing hopes of a September rate hike by the Fed.

Gold rose to an 11-day peak of $1,335.78 an ounce before losing momentum, as investors now shift their attention to ISM services PMI. The spot was last trading at $1,334.73 an ounce, recording a 0.56% gain on Tuesday.

The metal has benefitted from lower expectations of an imminent rate hike by the Fed. Still investors consider December as a possibility for such a move. The metal remains sensitive to changes in Fed funds rates, which raise the opportunity cost of holding non-yielding assets while lifting the dollar in which the metal is priced.

Information on these pages contains forward-looking statements that involve risks and uncertainties. Markets and instruments profiled on this page are for informational purposes only and should not in any way come across as a recommendation to buy or sell in these assets. You should do your own thorough research before making any investment decisions. FXStreet does not in any way guarantee that this information is free from mistakes, errors, or material misstatements. It also does not guarantee that this information is of a timely nature. Investing in Open Markets involves a great deal of risk, including the loss of all or a portion of your investment, as well as emotional distress. All risks, losses and costs associated with investing, including total loss of principal, are your responsibility.

RELATED TOPICS