Gold rises on worries about growth and inflation

Tuesday, April 26, 2022 - 23:09
Point Trader Group
Gold rises on worries about growth and inflation

Gold prices rose on Tuesday as investors sought safe assets amid concerns about global growth and rising inflation, but bets on sharp US interest rate hikes kept the yellow metal close to its four-week low hit in the previous session.

Spot gold rose 0.3% to $1,903.70 an ounce by 09:53 GMT.

Prices touched $1,890.20 on Monday, the lowest since March 29.

US gold futures rose 0.5% to $1,904.40 an ounce.

With the US Federal Reserve expected to raise interest rates by half a percentage point at each of its next meetings, there was concern in the markets that the rapid pace of tightening could hamper the global economic recovery.

Markets were also affected by the economic repercussions of China's COVID-19 lockdown.

The dollar, a rival safe haven, rose to a two-year high, making gold priced in dollars more expensive for holders of other currencies and holding back further gains for the precious metal.

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