Gold hits two-week high as dollar falls after G20 trade message
Gold has been rising since the US Federal Reserve raised interest rates but stopped short of predicting a sharper acceleration in monetary tightening
London — Gold prices scaled a two-week peak on Monday as the dollar slid to a six-week low after a G20 weekend summit dominated by the US administration’s protectionist stance on global trade.The precious metal has been rising since 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 sensitive to falling interest rates, which reduces the opportunity cost of holding nonyielding bullion."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 Hansen, head of commodity strategy at Saxo Bank.Spot gold rose 0.3% to $1,231.45 an ounce by 2.50pm GMT, after touching $1,235.50, its highest since March 6. US gold futures gained 0.1% to $1,231.80.Breaking a decade-long...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.