* Asian stocks firm, growth fears cap gains
* Dollar stable near recent highs (recasts, adds comments and details, updates prices)
By Bharat Gautam
July 5 (Reuters) – Gold prices were largely unchanged on Tuesday as investors stayed away on an easing inflation outlook and looming interest rate hikes from major central banks .
Gold’s attractiveness for inflation hedging is being tarnished by a weaker inflation outlook, with looming global rate hikes also clouding the outlook for non-performing assets, said Stephen Innes, managing partner at SPI Asset Management.
Gold has been under pressure over the past few months as major central banks around the world moved to raise interest rates in their bid to rein in runaway inflation.
Bullion prices mostly floated above the $1,800 support level after falling below to a five-month low of $1,783.50 on Friday.
“While we are stuck in the $1,790-$1,830 range, gold could be supported by recession fears and perhaps the Federal Reserve eases policy as the market pivots on inflation concerns. “, Innes said.
Gold is considered a safe store of value in times of economic crisis, such as a recession.
As trade resumed after a long Independence Day holiday weekend on Monday, benchmark 10-year U.S. Treasury yields firmed, weighing on bullion prices. [US/]
The dollar stabilized near two-decade highs on Tuesday and continued to steer buyers holding other currencies away from gold at the price of the greenback. [USD/]
Asian equities, meanwhile, edged higher, but lingering fears over global growth and high levels of inflation kept gains firmly capped. [MKTS/GLOB]
Looking ahead, US jobs and inflation data will give investors insight into the economy after 150 basis points of rate hikes already announced by the Fed. A disappointing jobs report could exacerbate fears of a possible recession.
firmed 0.1% to $1,924.60. (Reporting by Bharat Govind Gautam in Bengaluru; Editing by Uttaresh.V) ((BharatGovind.Gautam@thomsonreuters.com ;)) Tags: GLOBAL PRECIOUS/ (UPDATE 1)
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