Gold lifts above 19-month low on stronger yuan
But prices will have to move above $1,200 an ounce for speculative investors who have built large bets on lower prices to be shaken from their positions, an analyst says
London — Gold prices rose on Monday after touching a 19-month low last week as a strengthening currency in China made the metal cheaper for buyers in the world’s biggest gold consumer. Gold has tumbled 13% from an April high as the dollar powered higher against the yuan and other currencies, raising the cost of dollar-priced bullion outside the US. That pressure has eased after news of US-China trade talks planned for this week helped lift the yuan from its weakest in 19 months, said Saxo Bank analyst Ole Hansen. But prices would have to move above $1,200 an ounce for speculative investors who have built large bets on lower prices to be shaken from their positions, he added. "The bears who have been in control for weeks or even months have no reason to worry," he said. Spot gold was up 0.3% at $1,187.51 an ounce at 11.04am GMT after Thursday’s dip to $1,159.96, the lowest since January 2017.
US gold futures were up 0.8% at $1,194.10 an ounce. "Value-buying in this oversold ter...
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