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Gold prices inch up on softer dollar

| Updated: October 22, 2017 02:42:43


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Gold prices inched up to their highest in more than a week on Tuesday, drawing support from geopolitical tensions and a softer dollar.

Spot gold was up 0.2 per cent to $1,286.86 an ounce by 0339 GMT, after earlier in the session touching its best since late September at $1288.19, reports Reuters.

US gold futures for December delivery climbed 0.3 per cent to $1,289.30 per ounce.

Geopolitical tensions and uncertainty around what US President Trump might do about North Korea kept a certain degree of risk aversion alive in markets, and that was providing temporary support to gold prices, said Mark To, head of research at Hong Kong's Wing Fung Financial Group.

A softer dollar on Tuesday was also lending support but growing expectations that the Fed would raise interest rates again this year checked gold's gains.

Reuters technical analyst Wang Tao sees spot gold still targeting $1,299 per ounce, as it has broken a resistance at $1,281.

Silver price rose 0.5 per cent to $17.02 an ounce, having hit a two-week high of $17.06 earlier.

Platinum was up 0.4 per cent to $915.55 an ounce. Palladium was little changed at $929.22 an ounce.

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