Gold price Inches Higher As Dollar Softens

New York (Aug 7) Gold prices edged higher on Tuesday morning as a weaker US dollar helped induce some buying at lower levels after recent heavy losses.
Spot gold was marginally higher at USD1,214.75 an ounce while US gold futures were up 0.4% at USD1,222.80 an ounce.

The dollar rally paused as a first wave of US sanctions against Iran officially came into effect at 12:01 a.m. US Eastern time (0401 GMT) on Tuesday, with US President saying that he is asking for World Peace, nothing less!

The yuan stabilized as Chinese stocks rebounded following a heavy four-day selloff.

China's foreign exchange reserves rose by USD5.82 billion to USD3.12 trillion in July, figures from People's Bank of China showed today, possibly reflecting valuation gains from a rise in the price of the foreign bonds held by the central bank. Reserves were forecast to remain at USD3.11 trillion.

The figures do suggest that the PBoC probably did not deploy its FX reserves to defend the renminbi last month, Julian Evans-Pritchard, an economist at Capital Economics, said.

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