Gold futures rose as much as 0.3 percent on Tuesday driven by the recent plunge of the greenback on expectations that future interest rate hikes led by the U.S. Federal Reserve seemed to ease off.
U.S. gold futures advanced more than 0.3 percent to settle at $1,236.90 an ounce for its August delivery. Spot gold as well was 0.3 percent higher to finish at $1,237.05 an ounce on the day after hitting its best level since July 3 at $1,238.27 an ounce. Technical analyst at Reuters Wang Tao said that spot gold is currently facing a resistance at $1,239 an ounce and may hover under the level but only for a short period of time.
Wing Fung Financial Group’s head of research said that there are possibilities that the yellow metal will trade at a range of $1,200-1,250. He added that it is nearly impossible that gold and other metal prices will break above the said levels because there are no major drivers for now like geopolitical uncertainties.
According to OANDA’s senior market analyst Jeffrey Halley, with the street reprising it expectations on future interest rate hikes in the United States and the non-hawkish comment of Fed chair Janet Yellen, the U.S. dollar should continue to help gold prices.
Meanwhile in other precious metals, palladium slipped by 0.2 percent at $866.50 an ounce, spot silver rose as much as 0.7 percent at $16.18 an ounce and platinum slipped more than 0.2 percent at $919.75 an ounce.