Gold prices hit a one-week high on Wednesday as the US dollar weakened, following US President Donald Trump\u2019s attack on the Federal Reserve on interest rates. Spot gold rose 0.2% to trade at $1,197 an ounce, its highest level since August 14. US gold futures rose 0.3% to $1,203.<\/p>\n
USD\u2019s sell off continued until early Wednesday after US President Donald Trump’s criticism of the Federal Reserve Chairman on his comments to raise interest rates.<\/p>\n
Trump’s criticism comes as investors are expecting the minutes of the August monetary policy meeting on Wednesday and the bank’s annual symposium at Jackson Hole in Wyoming later this week.<\/p>\n
Gold is highly sensitive to US interest rates rising because it increases the opportunity cost of metals that do not have returns while enhancing the dollar.<\/p>\n
The dollar index, which measures the strength of the greenback against a range of major rivals, fell 0.1% after hitting a low of 95.08 points at a previous session this week. The general rule is that the weak dollar strengthens the price of the dollar denominated gold.<\/p>\n
US financial markets are also focused on a US-China trade meeting expected this week, although Trump indicated on Monday that he does not expect much progress in talks with Beijing.<\/p>\n
SPDR Gold Trust, the world’s largest gold backed ETF, fell 0.46% to 768 tons Tuesday from 772 tons on Monday. South Africa\u2019s National Union of Mineworkers said on Tuesday that wage negotiations in the gold sector had reached a deadlock.<\/p>\n
South Africa’s Harmony Gold reported a 43 percent drop in annual profit on Tuesday, weighed down by impairments and a dollar debt loss.<\/p>\n
Data from the Swiss customs bureau showed that Switzerland’s imports and exports of gold fell in July.<\/p>\n
In Russia, the gold and silver producer Polymetal said on Tuesday that its net income rose 46 percent year-on-year to $175 million in the first half of 2018 due to higher production and sales.<\/p>\n","protected":false},"excerpt":{"rendered":"
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