Gold falls foul of stronger dollar
Metal is weaker as the greenback benefits from China’s central bank easing its domestic policy to support the economy
Bengaluru — Gold fell on Monday as the dollar firmed after China’s central bank eased its domestic policy to support the economy amid concerns that an escalating trade dispute with the US could hurt growth. The People’s Bank of China (PBoC) on Sunday announced a steep cut in the level of cash that banks must hold as reserves, stepping up moves to lower financing costs and spur growth. Spot gold was down 0.5% at $1,196.61/oz at 4.41am GMT. US gold futures fell 0.5% to $1,200.50/oz. “Although the dollar index has not gained much, the decision by China might be seen by some market participants as some sign of softness as a result of the trade war, which could benefit the dollar,” said John Sharma, an economist at National Australia Bank. The dollar was up 0.1% against a basket of six major currencies, as China followed an easing in domestic policy by allowing yuan to fall, though the drop was not as sharp as some had feared. “Maybe, the trade war is affecting China more than realised a...
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