Gold climbs as dollar sags on trade truce, palladium hits record high
The current bullion rally is not expected to last, however, as investor sentiment for riskier investments improves
Bengaluru — Gold climbed to a more than five-week high on Tuesday as the dollar sagged after the US and China agreed on a 90-day pause to fresh trade tariffs, while palladium notched up a record high, putting it about $4 short of parity with bullion. Spot gold rose for the second straight session, up 0.7% at $1,239.30 an ounce at 11.03am GMT. Prices touched a peak of $1,241.10 earlier in the session, their highest since October 26. US gold futures were up 0.4% at $1,244.80 an ounce. The dollar weakened against its major peers, pressured by a thaw in trade tensions between Washington and Beijing, making gold cheaper for holders of other currencies. “Primarily it is the weaker dollar that is providing assistance and that will be the key driver in the short term,” said Capital Economics analyst Ross Strachan. “However, it is going to find it difficult to sustain the current rally unless there is even more dollar weakness, simply because the (overall) investor sentiment for riskier asse...
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