Gold makes a small recovery as dollar eases
The weaker dollar is thanks to the euro and pound surging after a Brexit breakthrough, rather than US fundamentals
Bengaluru — Gold prices inched up on Wednesday as the dollar retreated from a 16-month high touched earlier in the week, easing amid a surge in the euro and sterling on a draft Brexit agreement. Spot gold rose 0.2% to $1,203.88 an ounce at 3.51am GMT. Prices slipped to their lowest level since October 11, at $1,195.90, in the previous session. US gold futures were also up 0.2%, at $1,203.20/oz. “There has been some stalling in the dollar … helping gold to pick up,” said John Sharma, an economist with National Australia Bank (NAB). A weaker greenback makes dollar-denominated gold cheaper for holders of other currencies. “We are seeing investors and speculators snapping up gold because gold has the potential to go up to $1,230 to $1,240,” said. The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.2%, pulling back from a 16-month high. However, the selloff in the dollar has been due to the improved risk sentiment around a potential B...
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