Gold is hardly changed although likely to take heart from weaker dollar
London — Gold was steady on Monday and likely to see further gains after the dollar slumped to multi-month lows on the back of data that pointed to weak US inflation and less chance of rate increases. "The dollar continues to be on the back foot and yields have dropped back somewhat from their relatively elevated positioning lately," said analyst Jonathan Butler at Mitsubishi in London. Spot gold was up 0.2% to $1,230.51/oz at 10.06am GMT while US gold futures for August delivery rose 0.2% to $1,229.70/oz. "If gold remains at $1,230 or goes higher, there’s an elevated risk that some of those short positions might start to be reversed and that would give some further upside to gold," Butler added. Recent soft US inflation and domestic demand figures undermined arguments for the US Federal Reserve to raise interest rates, with traders cutting back their bets on the likelihood of an increase in December. The US dollar nursed losses at a 10-month low against a basket of currencies on Mo...
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