Gold hits two-week high as dollar weakens and on US-China trade tensions
London — Gold hit a two-week high on Thursday as the dollar fell and investors fretted over weak Chinese data and US-China trade frictions, though the precious metal’s upside was capped by a slightly more hawkish US Federal Reserve. The dollar edged back against the euro as speculation grows that the European Central Bank (ECB) will signal an end date for its vast stimulus programme at its policy meeting, giving back all its gains following Wednesday’s Fed meeting. As widely expected, the Fed lifted key overnight borrowing costs by a quarter percentage point. It also projected two more rate increases by the end of this year, compared to one previously. A weak dollar makes dollar-priced gold cheaper for non-US investors. Spot gold rose 0.5% to $1,304.65 an ounce at 10.20am GMT. It earlier hit a high of $1,303.58 an ounce, its best since May 31. US gold futures for August delivery rose 0.6% to $1,308.90 an ounce. "Trade tensions and the dollar downtrend are supportive for gold, but ha...
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