London — Gold prices steadied on Wednesday, but the expectation of a higher dollar due to rising US interest rates and strong demand for US treasury bonds seen as a refuge from trade tensions are expected to weigh. Spot gold was up 0.1% to $1,212.15 an ounce at 10.11am GMT compared with $1,204 hit last week, its lowest since March 2017. Prices are down more than 10% since April. US gold futures were up 0.1% at $1,220.10. A higher US currency makes dollar-denominated gold more expensive for holders of other currencies, which potentially would subdue demand. This relationship is used by funds to generate buy and sell signals from numerical models. "The Fed is going raise rates further this year, that will push up the dollar, a negative for gold," said Quantitative Commodity Research analyst Peter Fertig. "An escalation in the trade dispute will trigger further moves into US treasuries regarded as the ultimate safe haven. Investors who buy treasuries need dollars." The latest salvo on ...
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