US dollar pauses rally supports gold

Gold rose in Asia on Wednesday as the dollar took a break after hitting 20-year highs. Gold futures rose 0.03% to $1,764.35 a barrel, while the dollar was only slightly higher. The dollar index was near its highest since 2002 as recession fears fueled demand for safe-haven currencies. Michael McCarthy, chief strategy officer at Tiger Brokers, told Reuters that the recovery in gold after a major decline was minimal and that it could fall further in the medium term after falling to support levels of $1,790-$1,800. Major central banks in June hiked interest rates the most in at least two decades, according to Reuters. The Reserve Bank of Australia raised interest rates by 50 basis points on Tuesday, in line with Investing.com’s expectations. Investors are now awaiting the Fed’s June minutes. Among other precious metals, silver fell 0.41%. Platinum fell 0.64% and palladium fell 0.43%.