adminMANILA. — Gold edged higher yesterday as equities faltered on the mounting expectation that the US Federal Reserve is likely to go ahead with an interest rate increase in September. Fed vice-chairman Stanley Fischer said on Saturday that US inflation was likely to rebound as pressure from the dollar faded, allowing the US central bank to raise interest rates gradually.
Mr Fischer’s comment sent Wall Street lower overnight and US stock futures stretched losses on Tuesday, with Asian shares also falling, led by China. The dollar similarly weakened as risk aversion favoured the euro and yen. “We are seeing some general risk-off moves in the Asian time zone and some buying of gold would be consistent with that,” CMC Markets chief market analyst Ric Spooner said in Sydney.
Spot gold was up 0,5 percent at $1 139,60 per ounce by 1.53am GMT, after an uneventful session on Monday. Bullion ended August 3,5 percent higher as worry over China’s slowing economy sparked safe-haven bids, although the metal has since come off a seven-week top. — Reuters.
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