London — Gold prices scaled a two-week peak on Monday as the dollar slumped to a six-week low after a Group of 20 (G-20) weekend summit that was dominated by the US administration’s protectionist stance on global trade. The precious metal has been rising since last Wednesday, when the dollar dropped after the US Federal Reserve raised interest rates but stopped short of predicting a sharper acceleration in monetary tightening over the next two years. Gold is highly sensitive to falling interest rates, which decrease the opportunity cost of holding nonyielding bullion while weighing on the dollar, in which it is priced. A weaker dollar also increases the buying power of nonUS investors. "Overall the geopolitical outlook still points to several hotspots … and we’re not going to see a focus on rate rises for the foreseeable future now, because that’s out the way. Over the next few weeks one has to favour the upside," said Ole Hanson, head of commodity strategy at Saxo Bank. Spot gold r...
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