Gold dips below $1,200 as Brexit and Italy keep the dollar strong
SPDR Gold Trust holdings rose on Monday, while spot gold was down, at one point falling to its lowest since October 11
Bengaluru — Gold slid below key support at $1,200 an ounce for the first time in a month on Tuesday as concerns over Italy’s budget and ongoing Brexit talks, along with expectations for further US rate hikes, held the dollar near 16-month highs. Dollar strength has outweighed any positive impact of risk-aversion on gold, traditionally also seen as a safe store of value in times of market volatility. Stock markets recovered some lost ground after the previous day’s tech-led losses, meanwhile, potentially diverting interest from alternative assets, such as bullion. Spot gold was down 0.2% at $1,197.77 an ounce at 10.49am GMT, having fallen to its lowest since October 11 at $1,195.90 earlier in the day. US gold futures fell 0.5% at $1,198.00 an ounce. “The dollar has tightened its grip on gold again,” said Julius Bär analyst Carsten Menke. “The dollar’s strength since the middle of last week has been the main factor pushing gold lower.” The $1,200 level is important psychologically and...
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