Gold price rebounds as rally in dollar pauses after record high – MINING.COM – MINING.com

Traders are also digesting a slew of economic data for signs that price increases are cooling while they wait for additional comments from Federal Reserve officials this week. US durable goods orders fell 0.2% in August, but the value of core capital goods bookings, which is a proxy for investment in equipment that excludes aircraft and military hardware, rose last month by the most since January, even amid rising interest rates.

Capitulation risk is rising in gold, said TD Securities commodity strategists led by Bart Melek. They expect gold prices to fall further below the $1,600 level in the next stage of the interest-rate hiking cycle as traders are now pricing the potential for higher interest rates to persist for some time.

This week, the market may face fresh volatility from the release of US inflation data and public speaking engagements by Fed Vice Chair Lael Brainard and New York Fed President John Williams.

Spot gold climbed 0.8% to $1,636.02 an ounce at 11:04 a.m. in New York, after falling 1.3% on Monday. The Bloomberg Dollar Spot Index declined 0.2%, after rising to a record at the start of the week. Silver, platinum and palladium all gained.

(ByYvonne Yue Li, with assistance fromSing Yee OngandEddie Spence)

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Gold price rebounds as rally in dollar pauses after record high - MINING.COM - MINING.com

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