Gold hits more than six-month low as dollar and equities recover
Europe claws higher after China enters bear territory and the dollar recovers from a one-week low amid rising trade tensions; palladium hits lowest since early April
London — Gold hit its lowest in more than six months on Tuesday as a sell-off in global risk assets eased and the precious metal remained under pressure from the prospect that rising US interest rates will further support the dollar. Modest gains from Europe’s main bourses relieved nervy investors on Tuesday, after the latest escalation in an increasingly global trade storm pummeled Wall Street and sent China into bear market territory. Rising equities, seen as risky assets, tend to weigh on gold, seen as a safe haven. The dollar strengthened on growing concerns about an intensifying conflict between the US and its trade partners, particularly China. A stronger dollar makes dollar-priced gold costlier for non-US investors. "The dollar [has been] a lot stronger, that’s the main driver here. Also, gold hasn’t seemed to benefit from the [trade] turmoil, so I imagine that’s made some longs throw in the towel," said Matthew Turner, commodities strategist at Macquarie. "The question is wh...
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