Gold ticks up on softer dollar, doubts over early Fed taper

Gold prices firmed on Tuesday, propped up by a softer dollar and prospects of the U.S Federal Reserve delaying a tapering in its pandemic-era bond purchases

Spot gold rose 0.2% to $1,826.75 per ounce by 0108 GMT

Prices had hit a 2-1/2-month high last week following a disappointing U.S. non-farm payrolls data. A strong jobs recovery is crucial for the central bank to start withdrawing its stimulus measures

Some investors view gold as a hedge against inflation that may follow stimulus measures, while lower interest rates reduce the opportunity cost of holding non-yielding bullion

U.S. gold futures eased 0.3% to $1,828.00

The dollar index ticked down about 0.1%, lifting gold’s allure for holders of other currencies

Most U.S. markets were closed on Monday for the Labor Day holiday

With the euro zone economy roaring back to life, the European Central Bank will debate a cut in its stimulus on Thursday, beginning a hard-fought and lengthy discussion on how to dismantle the crisis-fighting measures that have kept the bloc afloat

In Japan, household spending grew less than expected in July as a resurgence of Covid-19 cases hindered consumer activity and threw broader economic recovery prospects into doubt

India’s gold imports in August nearly doubled from a year earlier on strong demand and as weaker prices prompted jewelers to ramp up purchases for the festive season, a government source said

Silver firmed 0.4% to $24.76 per ounce, platinum rose 0.1% to $1,020.26 and palladium was flat at $2,410.52