Gold inches higher as dollar rally runs out of steam
Bullion strengthens from a 2018 low, adding traction as the greenback falls off its five-month high, but risk appetite in the broader markets keeps the metal’s gains in check
London — Gold edged up on Tuesday from a 2018 low, adding traction as the dollar fell off its five-month high, although risk appetite in the broader financial markets kept the precious metal’s gains in check. The dollar lost momentum following a broad rally prompted by rising US bond yields and the prospect of a resolution to US-China trade tensions. A weaker dollar makes dollar-priced gold cheaper for non-US investors. Washington and Beijing both claimed victory on Monday as the world’s two largest economies stepped back from the brink of a global trade war and agreed to hold further talks to boost US exports to China. "This quarter and maybe going into next, gold will continue to struggle but the [positive] views on the US economy are overdone," said Philip Newman, director at Metals Focus. "There are concerns over sizeable US debt, there’s the [US] mid-term elections in November, there’s enough out there that could see the dollar eventually weaken and gold prices start to improve...
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