Gold Up as U.S. Dollar Weakens over Uncertain Monetary Outlook

By Zhang Mengying – Gold was down on Tuesday morning in Asia as the U.S. dollar eased, while investors monitored posturing from major central banks on interest rate hikes.

edged up 0.12% to $1,842.95 by 11:23 PM ET (3:24 AM GMT). The , which normally moves inversely to gold, fell on Tuesday morning.

Benchmark rose, keeping gold prices in check.

“The (gold) market is sitting tight as, after a historic week for global central banks; policymakers will get to explain the reasoning behind their decisions this week,” said SPI Asset Management managing partner Stephen Innes.

delivered the biggest interest rate hike since 1994 to tame red hot inflation, while some major central banks followed.

“While the street does not expect Powell to reinvent the policy wheel, we could expect him to reinforce the idea that the Fed is in data-dependent mode. Hence, gold and every interest-rate sensitive risk asset will be subject to headline risk,” Innes added.

Fed Chair Jerome Powell is due to testify to the Senate and the House on Wednesday and Thursday.

In other precious metals, silver was up  0.39%. Platinum gained 0.74% while palladium climbed 1.32%

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