London — Gold dipped on Tuesday even though the dollar remained flat against a basket of currencies, with investors concerned the greenback could resume its rally amid looming interest rate increases and escalating China-US trade tensions. Since its April peak, gold has dropped more than 12%, losing its safe-haven status to the dollar, a strengthening of which makes gold costlier for non-US investors. Thishas prompted investors to raise their bearish bets on Comex gold and liquidate exchange-traded gold funds. "[There's] a generally strong dollar backdrop, which is keeping the precious metal under pressure. The market is very short gold futures," said ICBC Standard Bank analyst Marcus Garvey. He added, however, that financial positions are becoming so short t would not take much of a surprise to spark a short-covering rally. "There's a good chance gold recovers back to $1,200 and possibly a bit higher." Spot gold dipped 0.2% to $1,192.86 an ounce at 10.06am GMT while US gold future...
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