Gold hits 5-month low, loses another Rs 250 on global cues

Gold Price Falls; Look at Factors Governing the Rates This Week

Gold: Bearish pressure remains unabated amid broad-based USD strength

Federal Reserve Chairman Jerome Powell on July 17 told the U.S. Senate Banking Committee that the U.S. job market is strong and the economy is growing at a solid pace.

On Wall Street, the Dow Jones Industrial Average .DJI rose 79.4 points, or 0.32 percent, to 25,199.29, the S&P 500 .SPX gained 6.07 points, or 0.22 percent, to 2,815.62 and the Nasdaq Composite .IXIC dropped 0.67 points, or 0.01 percent, to 7,854.44.

Platinum was 0.4 percent lower at $810.30 an ounce.

Japanese shares closed higher at their highest level in more than a month, led by gains in automobile and technology stocks.

Australian stocks fell 0.5 percent and South Korea's KOSPI was flat. At the Multi Commodity Exchange, gold prices for delivery in August declined by Rs 29, or 0.10 percent, to Rs 29,700 per 10 grams in a business turnover of 1,255 lots, it further said.

Meanwhile, another central banker on Tuesday said that with the United States economy firing on all cylinders, the Fed should ease away from monetary policy accommodation and move interest rates up far enough to prevent unwanted inflation but not so fast that a recession ensues. In the technology sector, Advantest Corp advanced 1.5 percent and TDK Corp added 1 percent. Shares rose in Taiwan and Southeast Asia.

The index shed 0.25 percent on Monday, nudging away from a two-week high of 95.241 scaled on Friday ahead of Fed Chairman Powell's testimony.

The euro was up 0.07 percent at 89.11 pence against sterling, moving back toward the four-month high of 89.31 pence it hit the previous day.

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In the tech sector, Netflix shares closed down by more than 5 percent after missing subscriber growth projections, after dropping by around 14 percent during the NY session.

The euro was 0.05 percent lower at $1.1655 after losing 0.4 percent overnight. The company and its rival News Corp. have agreed to use each other's printing networks under a deal that will deliver cost savings, .

Shares in investment bank Goldman Sachs dropped 1.3 per cent after reporting a 44 per cent jump in second-quarter earnings to US$2.3 billion and announcing that David Solomon would succeed Lloyd Blankfein as chief executive.

Platinum fell 1.2 percent to $812 an ounce, hitting a two-week low at $808.89. Economists expected inflation to have grown at 4.8% year on year on year.

Benchmark indexes in Indonesia, Malaysia, Singapore and Taiwan were up between 0.2 percent and 0.6 percent while India's Sensex was moving down 0.2 percent.

China could end US tariffs "this afternoon by providing a more satisfactory approach" and taking steps that other countries are also calling for, Kudlow said.

Higher interest rates make gold more expensive to own since bullion does not earn any interest or dividends, and costs money to store and insure.

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