BENGALURU (Reuters) - Gold prices hit a fresh one-week high on Wednesday amid ongoing weakness in the dollar following U.S. President Donald Trump's attack on the Federal Reserve over interest rates.
U.S. gold futures
The sell-off of the dollar continued through early Wednesday, following U.S. President Donald Trump's criticism of the chairman of the Federal Reserve for raising interest rates in an interview with Reuters on Monday.
Trump's criticism comes as investors are anticipating the release of the Fed's August policy meeting minutes on Wednesday and the bank's annual symposium at Jackson Hole, Wyoming, later this week.
Gold is highly sensitive to rising U.S. rates as it increases the opportunity cost of holding non-yielding metal while boosting the dollar.
The dollar index <.DXY>, which measures the greenback against a basket of currencies, was down about 0.1 percent on Wednesday, after touching its lowest since Aug. 9 at 95.08, in the previous session.
A weaker dollar generally boosts the price of dollar-denominated gold.
Markets were also focused on a U.S.-China trade meeting this week, but Trump said on Monday he did not expect much progress from talks with Beijing.
Holdings of SPDR Gold Trust
South Africa's National Union of Mineworkers (NUM) said on Tuesday that wage negotiations in the gold sector were at a deadlock and the union had declared a dispute, a move that is one step short of a strike.
Switzerland's gold imports and exports fell in July, data from the Swiss customs bureau showed.
South Africa's Harmony Gold
Russian gold and silver producer Polymetal
(Reporting by Nallur Sethuraman in Bengaluru; editing by Richard Pullin)
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Updated Date: Aug 22, 2018 07:05 AM