|Published : 18 Oct 2016, 15:08:46|
Gold prices climb as dollar weakens
Gold prices rose for a second day on Tuesday, supported by a weaker US dollar amid uncertainty over when the US Federal Reserve will raise interest rates.
Spot gold was up 0.5 per cent at $1,261.25 an ounce at 0711 GMT.
US gold futures had risen 0.5 per cent to $1,262.60 an ounce.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund (ETF), rose for a third straight session on Monday. They were up 0.18 per cent at 967.21 tonnes.
Gold is highly-sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.
The dollar index, which measures the greenback against a basket of currencies, was down 0.2 per cent at 97.746 after touching seven-month highs Monday.
A stronger greenback makes dollar-denominated gold more expensive for holders of other currencies.
Asian stocks rose on Tuesday thanks to a rebound in oil prices.
Spot gold may test resistance at $1,266 per ounce, as suggested by its wave pattern and Fibonacci projection analysis.
Gold is likely to recover to above $1,300 an ounce next year as a pickup in physical demand counters more potential US rate increases.
Silver was up over 1.0 per cent at $17.62 an ounce.
Platinum rose 0.8 per cent to $944.35. It touched a new over 7-month low of $923 on Monday.
Palladium was up nearly 1.0 per cent at $643.05, according to Reuters.