Title: Gold Up as Dollar Rally Pauses
Jul 07, 2022 12:37AM ET
Gold prices rose in Asia Thursday morning as the U.S. dollar took a breather after surging to a 20-year high.
Gold futures were up 0.36% at $1,742.80 an ounce by 12:34 AM ET, while the dollar, which typically moves inversely to gold, edged higher on Wednesday morning.
"With momentum pointing south, buyers are trying to catch a falling knife," said Matt Simpson, senior market analyst at City Index.
"$1,721 and $1,700 are potential support levels for bulls to consider a punt, but until the dollar peaks, it's probably a punt."
In the previous session, a stronger dollar pushed gold down as much as 1.9% to its lowest level since September 30 at $1,731.00.
"This decline may continue," Ilya Spivak, currency strategist at DailyFX, told Reuters, adding that gold could fall below $1,700 and near $1,680 if it breaks support at $1,715 an ounce.
Minutes from the Federal Reserve's June meeting released Wednesday hinted at the possibility of "even tighter" monetary policy to prevent prolonged inflation. Now investors have priced in another 75 basis-point rate hike by the Fed in July.
In other precious metals, silver rose 0.70%. Platinum rose 0.72%, while palladium gained 0.57%.