Bengaluru — Gold held steady near a four-month high on Wednesday, as the dollar sank to a fresh three-year low, while the worry about potential trade wars led to some risk-aversion trade as well. Spot gold was nearly flat at $1,340.90/oz at 4.39am GMT, while US gold futures for February delivery rose 0.28% to $1,340.40/oz. "Gold could move higher as we are still in the early stages of a broader [dollar] sell-off, with all eyes focused on 110 [dollar-yen]," said Stephen Innes, APAC head of trading at Oanda. The dollar touched a four-month low against the yen on the simmering concern that the US currency’s yield advantage will start to erode as major central banks head towards unwinding their massive stimulus. It slipped to as low as ¥110.06, the lowest since September 15, and was last down 0.1% at ¥110.16. The dollar index fell to its lowest since December 31, 2014, on a fresh burst of speculative selling. A weaker dollar makes bullion more attractive for holders of other currencies....
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