By Arundhati Sarkar
(Reuters) - Gold steadied on Tuesday after dropping to a nine-month low earlier as investors positioned for U.S. economic data, with a strong dollar and bets for steep interest rate hikes still keeping a leash on non-yielding bullion.
Spot gold was little changed at $1,734.59 per ounce by 0916 GMT after hitting $1,722.36 earlier in the session, its lowest since Sept. 30. U.S. gold futures rose 0.1% to $1,733.60.
The dollar climbed to a 20-year peak against a basket of major rivals, making greenback-priced gold more expensive for buyers holding other currencies. [USD/]
"Gold is set to stay significantly suppressed over the near-term, as the weight of more incoming super-sized Fed rate hikes hang like a millstone around gold's neck," said Han Tan, chief market analyst at Exinity.
"A higher-than-expected headline CPI print (on Wednesday)should pave the way for yet another 75 basis points hike by the Fed later this month; a scenario widely interpreted to be a negative for gold," Tan added.
However, offering some support for zero-yield gold, benchmark U.S. 10-year Treasury yields dropped for a second consecutive session. [US/]
A raft of U.S. economic data - including consumer prices, retail sales and factory output - should provide a glimpse of the extent to which inflation has peaked as the Federal Reserve moves closer to next week's policy meeting.
Meanwhile, the euro sank to within a whisker of parity with the dollar and stock markets fell as the prospect of further central bank tightening and worries about the health of economies worldwide unnerved investors. [MKTS/GLOB]
"Gold seems to have found a few friends near $1,730 over the last couple of days, without ever seriously looking like it would reverse its recent selloff," OANDA senior analyst Jeffrey Halley said.
Spot silver dropped 1% to $18.90 per ounce, platinum fell 1.7% to $855.04 and palladium slipped 1.4% to $2,132.90.
(Reporting by Arundhati Sarkar and Bharat Govind Gautam in Bengaluru; Editing by Krishna Chandra Eluri)
(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)
You’ve hit your limit of {{free_limit}} free articles this month.
Subscribe now for unlimited access.
Already subscribed? Log in
Subscribe to read the full story →
Quarterly Starter
₹900
3 Months
₹300/Month
Smart Essential
₹2,700
1 Year
₹225/Month
Super Saver
₹3,900
2 Years
₹162/Month
Renews automatically, cancel anytime
Here’s what’s included in our digital subscription plans
Access to Exclusive Premium Stories Online
Over 30 behind the paywall stories daily, handpicked by our editors for subscribers


Complimentary Access to The New York Times
News, Games, Cooking, Audio, Wirecutter & The Athletic
Business Standard Epaper
Digital replica of our daily newspaper — with options to read, save, and share


Curated Newsletters
Insights on markets, finance, politics, tech, and more delivered to your inbox
Market Analysis & Investment Insights
In-depth market analysis & insights with access to The Smart Investor


Archives
Repository of articles and publications dating back to 1997
Ad-free Reading
Uninterrupted reading experience with no advertisements


Seamless Access Across All Devices
Access Business Standard across devices — mobile, tablet, or PC, via web or app