Gold Edges Higher Amid Geopolitical Tensions, Strong Dollar Weighs
Gold prices edged higher in early Asian trade on Thursday, September 24, recovering some ground after three consecutive sessions of declines. On COMEX, December gold futures were at $4,332.40 an ounce, up $14, or 0.32%, from the previous close.
The contract touched an intraday high of $4,338 an ounce and a low of $4,319 an ounce. Meanwhile, silver remained under pressure as investors assessed developments around the US-Iran conflict, oil prices, and the outlook for US interest rates.
Oil prices rose sharply in the previous session amid heightened geopolitical tensions but eased on Thursday after Iran indicated it was open to diplomacy with the US. Brent crude futures were down 0.9% at $102.13 a barrel, while West Texas Intermediate crude eased 0.7% to $91.56.
A stronger dollar remains a headwind for bullion, as Kaynat Chainwala, AVP of Commodity Research at Kotak Securities, said gold and silver were pressured by the dollar strengthening to around 100.86, its highest level since July, while hawkish comments from Federal Reserve officials reinforced expectations of tighter monetary policy.