The prices of gold struggled near 7-week lows on Thursday as investors continued to cut the holdings of the precious metal amid expectations that the Federal Reserve will raise interest rates at its next session in December.
Gold for December delivery on the Comex Exchange inched up $1.10, or 0.1%, to trade at $1,107.30 a troy ounce. Spot was trading marginally lower at USD 1,110 an ounce in early morning session.
When testifying before the Committee on Financial Services of the House, Fed President Yellen described the US economy as “good performance” and a rise in interest rates in December as a “live possibility” if the economy remains on track.
The dollar recovered to 12 weeks versus its major counterparts as the expectations grew the Federal Reserve could tighten monetary policy over the coming months. Listed commodities become more expensive for investors holding other currencies when the greenback gains.
Investors are now looking forward to introduce US data later in the day for more indications about the strength of the economy and probability of a rate increase in the short term.
The United States will announce a weekly report on initial unemployment claims on Thursday, as well as data on nonfarm productivity and unit labor costs.
On the domestic front, bullion market here today due to sluggish offtake by stockists and retailers in the face of bearish overseas sentiment.
Gold prices on MCX for February contract was trading at Rs 25973 up Rs 11, or 0.04 percent.
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