Gold moderately risen in price on Tuesday, helped by growth in physical demand from India. However, the strengthening of the US dollar and the rising expectations of a Fed hike constrained the upward movement of the precious metal.
“The basic demand for the precious metal remains stable. In addition, a positive impact had fundamental factors, such as the stimulating monetary policy of central banks in Europe and Japan.” – ANZ analyst Daniel Hynes said.
The US Dollar Index, showing the US dollar against a basket of six major currencies, traded with an increase of 0.3%, close to the highest level since the beginning of March. Since gold prices are tied to the dollar, a stronger dollar makes the precious metal more expensive for holders of foreign currencies.
The cost of the November futures for gold on COMEX rose to $ 1271.9 per ounce.
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