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Gold edges up as economic worries lend support

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Gold prices rose marginally on Tuesday,

buoyed by economic growth concerns, although an elevated dollar

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and impending interest rate hikes kept gains in check.

Spot gold was up 0.1% to $1,810.45 per ounce at 0501

GMT. U.S. gold futures gained 0.6% to $1,812.20.

“While we are stuck in the $1,790 to $1,830 range, gold

could be supported on recession worries and possibly the Federal

Reserve softening their policy stance as the market pivots from

inflation concerns,” said Stephen Innes, managing partner at SPI

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Asset Management.

Gold is seen as a safe store of value during times of

economic crises, like a recession.

Bullion has been pressured in the past few months by major

central banks around the world moving to hike interest rates in

their attempt to tame runaway inflation.

“Overall, gold’s price action is still underwhelming,

setting a series of lower daily highs over the past month,

suggesting the downside remains the weaker path of travel,”

OANDA senior analyst Jeffrey Halley said.

The general move lower by U.S. yields seems to be delaying

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the inevitable correction lower in prices of non-yielding gold,

Halley said.

Resuming trade after a weekend extended by the Independence

Day holiday, benchmark U.S. 10-year Treasury yields recovered

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slightly from Friday’s one-month low, but remained below 3%.

The dollar hovered near a two-decade peak, and

continued to chip away at demand for greenback-priced gold among

buyers holding other currencies.

Meanwhile, Asian shares inched up as positive economic data

and hints of easing Sino-U.S. tensions offered some respite to

the recent sell-offs, though persistent fears about a global

recession and sky-high inflation kept most buyers at bay.

Spot silver gained 1% to $20.16 per ounce, while

platinum fell 0.4% to $882.50, and palladium

climbed 1.1% to $1,943.16.

(Reporting by Bharat Govind Gautam in Bengaluru; Editing by

Uttaresh.V and Amy Caren Daniel)

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