Gold edges up, but gains limited by rate hike prospects

BENGALURU: Gold edged up slightly in a technical rebound on Monday after one-month highs hit last week were undercut by the prospects of more interest rate hikes from the US Federal Reserve. Spot gold edged 0.1 per cent higher to $1,174.23 an ounce by 07:15 GMT. Gold gained nearly two per cent last week, its biggest weekly rise since early November, although it fell on Friday as Fed officials commented on data that pointed to an improving US economy.
US gold futures were up 0.1 per cent at $1,174.10 per ounce.
“Some kind of rebound in gold prices is still in place,” said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.
Spot gold is up nearly 5 per cent from mid-December, when it touched 10-month lows.
“Seasonally, January is a very bullish month for gold,” said Amit Kumar Gupta, research head at Adroit Financial Services, adding that the Chinese New Year this month is expected to increase physical buying.
A slight correction in the dollar index from its recent highs also helped gold prices, he added.
— Reuters