Gold dips as dollar continues to draw strength from Fed
A buoyant US economy and a last-minute US trade deal with Canada are also keeping the metal under pressure
Bengaluru — Gold prices dipped on Monday as the dollar firmed in the wake of indications from the US Federal Reserve last week that it will pursue a tighter monetary policy. The Fed raised US interest rates last week and said it planned four more increases by the end of 2019 and another in 2020, amid steady economic growth and a strong job market. Higher US interest rates tend to boost the dollar and push bond yields up, putting pressure on gold prices by increasing the opportunity cost of holding non-yielding bullion. Spot gold was down 0.3% at $1,188.41 at 4.07am GMT. On Friday, gold touched its lowest since August 17 at $1,180.34 an ounce. US gold futures were down 0.3% at $1,192.30 an ounce. "Gold prices remain dependent on the dollar prices at this juncture. The US economy has been rosy and better than expected. Efforts by the Trump administration to reduce the trade deficit from an economic point of view has been friendly for the greenback as well," OCBC analyst Barnabas Gan s...
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