Gold rises as dollar tumbles

Friday, 29 October 2021 00:00 - - {{hitsCtrl.values.hits}}

REUTERS: Gold prices rose yesterday, as demand for the safe-haven asset was lifted by a softer dollar and data showing the US economy grew at its slowest pace in more than a year.

Spot gold rose 0.3% to $ 1,801.43 per ounce by 2:05 pm ET (1805 GMT). US gold futures settled up 0.2% at $ 1,802.6.

“Economic growth slowed in the US and that would support the gold market in the perspective that the Federal Reserve would be less likely to either taper asset purchases at a quicker pace or the outlook for higher interest rates would be curtailed,” said David Meger, director of metals trading at High Ridge Futures.

US Gross Domestic Product increased at a 2.0% annualized rate last quarter, as a resurgence in COVID-19 cases further stretched global supply chains, leading to shortages of goods like automobiles that slammed the brakes on consumer spending.

The dollar fell 0.6% against a basket of currencies, a one-month low, making gold cheaper to overseas buyers.