Gold gains on softer dollar, safe-haven demand
![](https://m.economictimes.com/thumb/height-450,width-600,imgsize-58626,msid-94015254/gold-gains-on-softer-dollar-safe-haven-demand.jpg)
Synopsis
However, further gains in gold were limited by expectations that the U.S. Federal Reserve could deliver another hefty interest rate hike in its fight against inflation during its Sept. 20-21 policy meet.
* Spot gold rose 0.5% to $1,718.21 per ounce, as of 0120 GMT.
* The dollar index inched down 0.2% after touching a 20-year peak in the previous session.
* The euro zone is almost certainly entering a recession, with surveys on Monday showing a deepening cost of living crisis and a gloomy outlook that is keeping consumers wary of spending.
Stocks Recommendations
* Even though gold is seen as a hedge against inflation and economic uncertainties, higher interest rates increase the opportunity cost of holding the non-yielding bullion and boosts the dollar.
DATA/EVENTS (GMT)
0430 Australia RBA Cash Rate Sept
0600 Germany Manufacturing O/P Cur Price SA July
0600 Germany Consumer Goods SA July
0830 UK All-Sector PMI Aug
1345 US S&P Global Comp, Svcs Final PMIs Aug
1400 US ISM N-Mfg PMI Aug