Weaker dollar supports gold, but risk-on trade limits gains
The expectation that the US Federal Reserve might apply brakes on its monetary tightening cycle in 2019 is good news for the metal
Bengaluru — Gold rose on Monday, helped by a weaker dollar on the expectation that the US Federal Reserve might apply brakes on its monetary tightening cycle in 2019, although an improved risk appetite limited gains for the safe-haven metal. Meanwhile, spot palladium — which broke through $1,300/oz on Friday to hit its highest on record at $1,310 — eased slightly, but was still trading at a slight premium to gold. Spot gold was up 0.3% at $1,288.60/oz, as of 3.06am GMT and US gold futures gained about 0.4% to $1,290.70/oz. “The dollar is weak, aiding gold. Also, [Fed chair] Jerome Powell’s views on Friday about the future of interest rate hikes is a bullish factor for gold,” said Yuichi Ikemizu, Tokyo branch manager, ICBC Standard Bank. Powell said on Friday that he was aware of the risks related to an economic slowdown and would be patient and flexible in policy decisions during 2019. “Gold prices will be going higher in due time because of the Fed comments. Maybe, people have alre...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.