Gold Inches Higher As Dollar Softens

Gold prices edged higher on Tuesday morning as a weaker U.S. dollar helped induce some buying at lower levels after recent heavy losses.

Spot gold was marginally higher at $1,214.75 an ounce while U.S. gold futures were up 0.4 percent at $1,222.80 an ounce.

The dollar rally paused as a first wave of U.S. sanctions against Iran officially came into effect at 12:01 a.m. U.S. Eastern time (0401 GMT) on Tuesday, with U.S. President saying that he is asking for World Peace, nothing less!

The yuan stabilized as Chinese stocks rebounded following a heavy four-day selloff.

China’s foreign exchange reserves rose by $5.82 billion to $3.12 trillion in July, figures from People’s Bank of China showed today, possibly reflecting valuation gains from a rise in the price of the foreign bonds held by the central bank. Reserves were forecast to remain at $3.11 trillion.

The figures do suggest that the PBoC probably did not deploy its FX reserves to defend the renminbi last month, Julian Evans-Pritchard, an economist at Capital Economics, said.

by RTTNews Staff Writer

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