LONDON: Gold prices rose on Tuesday after hitting a five-week low as the dollar steadied after reaching a 3-week peak following hawkish comments from an influential US Federal Reserve official.

Spot gold rose 0.3 per cent to $1,246.60 per ounce by 1206 GMT, after earlier touching a low of $1,242.61 an ounce, the weakest since May 17. US gold futures rose 0.1pc to $1,247.90.

Investors are pricing in around a 50pc chance that rates will be raised again by the year-end, according to CME FedWatch. A strong dollar makes dollar-priced gold costlier for non-US investors.

Late Monday, Chicago Fed President Charles Evans said it may be worthwhile for the US central bank to wait until year-end to decide on rates, but investors focused on Dudley’s comments to bet the dollar up and gold down.

“Mixed US dollar trade provided some respite for gold during Asian trade on Tuesday, however, not to the extent we expected we would see,” MKS PAMP trader Sam Laughlin said in a note.

Among other metals, spot palladium traded flat at $859.90 per ounce, and platinum gained 0.4pc to $925.70. Silver rose 0.7pc to $16.57. In the previous session, it touched $16.44, its weakest since May 18.

Published in Dawn, June 21st, 2017