Gold subsides as the US dollar appreciates

One-kilo gold bars are pictured at the factory of gold and silver refiner and bullion manufacturer Argor-Heraeus in Mendrisio, Switzerland, July 13, 2022.

Denis Balibouse | Reuters

Gold prices fell on Wednesday under pressure from an uptick in the US dollar, after rising 2% in the previous session following China’s decision to further ease Covid restrictions.

Spot gold fell 0.2% to $1,809.58 an ounce at 0037 GMT. US gold futures fell 0.3% to $1,818.50.

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The dollar index edged up 0.1%, making dollar-priced gold more expensive for overseas buyers.

Bullion prices rose to their highest level in six months on Tuesday on optimism surrounding decisions by China’s top consumer to further ease Covid restrictions.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.6% to 918.51 tonnes on Tuesday.

The price of gold in Egypt has hit all-time highs as nervous savers seek refuge from a weakening currency and some companies export bullion to raise scarce dollars to fund imports, experts say of the sector.

Spot silver lost 0.4% to $23.95, platinum slid 0.5% to $1,015.17 and palladium fell 0.5% to $1,821.28.

Japanese factories cut output for a third consecutive month in November, dragged down by weak demand for mechanical products amid a deteriorating global economic outlook.

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