Gold slips amid steady dollar; investors wary ahead of Jackson Hole meet

A Kuwaiti jeweller displays gold bars at his shop in downtown Kuwait City on March 18, 2016. — Reuters pic
A Kuwaiti jeweller displays gold bars at his shop in downtown Kuwait City on March 18, 2016. — Reuters pic

BENGALURU, Aug 22 — Gold prices were a touch lower amid a steady dollar early today, with investors eying developments on the geopolitical front and remaining cautious ahead of an annual central banking meeting in Jackson Hole later this week.

Spot gold had slipped 0.1 per cent to US$1,289.77 (RM5,529.24) an ounce by 0054 GMT, after rising 0.5 per cent in the previous session.

US gold futures for December delivery were down 0.1 per cent to US$1,295.30 per ounce.

Asian shares edged higher today, taking solace from modest gains on Wall Street even as investors remained wary ahead of the annual Jackson Hole gathering.

The dollar index , which tracks the greenback against a basket of six major rivals, was steady at 93.107.

The United States and South Korean began long-planned joint military exercises yesterday, heightening tensions with North Korea which called the drills a “reckless” step toward nuclear conflict.

US workers see little hope for higher paychecks, and while they are increasingly searching for new jobs, they expect fewer offers to fall into their laps, according to a Federal Reserve survey published yesterday.

A vast majority of Japanese firms do not want any further radical monetary easing, even though they believe the central bank’s inflation goal will either take more than three years to achieve or is an impossible target, a Reuters poll showed.

Emerging economies’ debt in euros has shot to record highs thanks to European Central Bank largesse, and yet an approaching end to this generosity won’t necessarily inflict the kind of pain that markets once suffered at the hands of the US Fed.

The Swiss National Bank will have to wait years before it can start winding down its huge foreign currency holdings for fear of triggering renewed rises in the Swiss franc that would hurt exporters. — Reuters

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