Gold prices edge up after selloff as dollar eases

Gold prices gained on Wednesday, following a selloff in the previous session that pushed bullion to a seven-month low, after the dollar halted its rally.

FUNDAMENTALS

* Spot gold rose 0.4% to $1,770.71 per ounce, as of 0059 GMT. U.S. gold futures firmed 0.3% to $1,768.80.


* Gold lost more than 2% on Tuesday, as sharp gains in the dollar and rising interest rates sapped appetite for the non-yielding asset and sent prices tumbling through psychological support at the $1,800 per ounce level.

* Safe-haven demand strengthened the dollar in the previous session to levels last seen in 2002, making greenback-priced gold more expensive for buyers holding other currencies.

* Gold, however, found some respite on Wednesday, as the greenback slipped 0.1%.

* Oil futures tumbled and bond prices rose on Tuesday as investors sought safety after the latest data fuelled fears of a global economic slowdown.

* Benchmark U.S. 10-year Treasury yields firmed above an over one-month low hit on Tuesday.

* More G10 central banks raised interest rates in June than in any month for at least two decades, Reuters calculations showed, and with inflation at multi-decade highs, the pace of policy-tightening is unlikely to let up in the second half of 2022.

* Higher interest rates and bond yields raise the opportunity cost of holding bullion, which yields nothing.

* Spot silver firmed 0.4% to $19.27 per ounce, while platinum was flat at $865.48, and palladium gained 0.3% to $1,938.28.

DATA/EVENTS (GMT)

0600 Germany Industrial Orders MM May

1345 US S&P Global Comp, Svcs Final PMIs June

1400 US ISM N-Mfg PMI June

1800 US Federal Open Market Committee issues minutes from its June 14-15 meeting