On Tuesday morning, gold prices drowned in the Asian markets when the U.S. Dollar boosted, even after the continuing increment concerns. The precious yellow metal had traded near the peak of the week in the previous session.
Gold futures dropped by 0.42 per cent to 1,760.10 dollars during 11.50 PM ET (3:50 AM GMT), after reaching 1,770.41 dollars, its highest since September 23. Interestingly, the dollar, which generally moves opposite to the gold, was high on Tuesday.
On Monday, U.S. trade official Katherine Tai eliminated a few Chinese imports from tariffs applied by the former U.S. President Donald Trump. She also called for “Frank” talks with China over its defaulter, keeping up with promises made during the Trump-era trade deal and its industrial policies.
Besides, U.S. President Joe Biden notified that the government could breach its $28.4 trillion debt limit to enter a historic default until Republicans add their vote to increase it within the next two weeks. Simultaneously, data published on Monday in the U.S. shows that factory orders spiked more than the expected 1.2 per cent (M.O.M) in August 2021.
According to the government source, in the Asia Pacific, Indian gold imports soared 658 per cent in September from 2020’s lower base, along with an amendment in local costs supporting jewellers to increase purchases in the coming festive season.
The Reserve Bank of Australia also takes a step back from its policy decision earlier in the day. Holding its interest rate unchanged at 0.10 per cent, The Reserve Bank of New Zealand will take a step back on Wednesday, with the Reserve Bank of India following two days later.
In other precious metals, platinum and silver dropped by 0.7 per cent and 0.6 per cent, respectively, while palladium eased by 0.2 per cent to $1,900.58.