Gold prices steady as easing dollar lifts appeal

7.19.22 - The High Cost of Free Money

Gold last traded at $1,711 an ounce. Silver at $18.78 an ounce.

News Summary: Precious metal prices remained stable Tuesday as the U.S. dollar continues to fall. Stocks extended gains as Wall Street bets on better-than-expected earnings.

CNBC--"Gold steadied on Tuesday as a weakening dollar made it cheaper for overseas buyers, while investors awaited more cues from top central banks on their monetary policy plans....

While the dollar index shed 0.7% to lift gold, UBS analyst Giovanni Staunovo said prices were likely to see more volatility in the run-up to U.S. manufacturing data due late this week, which could influence the size of the Fed's next rate hike....

Meanwhile, euro zone bond yields jumped and the euro rallied on news that the European Central Bank would discuss this week whether to raise rates faster than expected.

'A surprise from the ECB, hiking more than the assumed 25 bps could weaken the dollar and provide support for gold,' said Ricardo Evangelista, senior analyst at ActivTrades, adding the metal was likely to remain under pressure, with significant resistance around $1,750."