Gold steadies as dollar runs out of steam
But the metal’s failure to capitalise on safe-haven buying, in the high-risk environment of the US-China trade war, is causing consternation
London — Gold steadied on Thursday as the dollar came off the boil, though the market lacked direction and seemed unable to capitalise on escalating trade tension. Stock markets and commodities regained some poise after a turbulent session on Wednesday when the US ratcheted up trade war threats against China, while the dollar held at a nine-day high. The dollar’s failure to push ahead, especially against the euro, is viewed by some market watchers as a sign it may have peaked for now as the Federal Reserve might slow its cycle of rate increases if stocks fall sharply. A weaker dollar makes dollar-priced gold cheaper for non-US investors who make up the bulk of gold buyers. "The (gold) market is lacking direction and very technical in its characteristics," said Alasdair Macleod, head of research at Goldmoney.com. Looking ahead, however, he said: "Gold could go marginally better. There are signs that the US economy may be slowing down a bit and if that’s so, we can expect the Fed to t...
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