Gold rise slightly as dollar slips from 20-year high

Gold prices rose slightly in early Asian hours on Tuesday, as the dollar eased off a 20-year high. This is offsetting pressure from expectations of the U.S. Federal Reserve holding interest rates higher for longer to combat inflation.

Spot gold increased 0.1 percent higher to $1,739.14 per ounce, as of 0058 GMT. Prices hit a one-month low of $1,719.56 on Monday.

U.S. gold futures increased 0.1 percent to $1,751.7.

The dollar index was off a two-decade high hit on Monday. Moreover, the benchmark 10-year yields pulled back from a two-month high hit in the previous session.

Gold is considered a safe bet during economic uncertainty.

“I felt the stock market selloff that followed Powell’s hawkish speech on Friday shows investors understand the central bank is serious about reducing inflation.” Minneapolis Fed President Neel Kashkari said on Monday.

SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings declined 0.38 percent to 980.61 tons on Monday from 984.38 tons on Friday.