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Gold Races Higher As Dollar Extends Losses

Published on Sep 12, 2022 14:57

COMEX Gold futures saw good gains amid a sustained drop in the US dollar index. The US dollar index started the new week in a dismal manner as it continued to add to its recent losses. The dollar index fell to around two week as market positioned itself for the US inflation report to assess the size of the Federal Reserve`s rate hike at this month`s policy meeting. The dollar index recorded its first weekly fall in four last week with losses accentuating after the European Central Bank announced a 75 basis point interest rate rise, taking its benchmark deposit rate to 0.75%. The bank further noted that it expects to hike rates further as inflation remains far too high and is likely to stay above target for an extended period. The US dollar index has been sliding thereafter and currently quotes at 107.94, down around 1% on the day. This slide in dollar boosted Gold as the yellow metal moved up above $1730 per ounce and currently trades up 0.50% at $1737 per ounce.

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