Soft dollar supports gold
Bullion holds steady, with improved risk appetite capping gains for the safe-haven metal
Bengaluru — Gold held steady on Tuesday as bets on a pause in US interest rate hikes and hope of a China-US trade deal put pressure on the dollar, but an improved risk appetite capped gains for the safe-haven metal. Spot gold was little changed at $1,287.70 by 1.48am GMT. It hit a more than six-month peak at $1,298.42 on Friday. US gold futures eased slightly at $1,288/oz. “A weakening dollar and falling US treasury yields should keep gold pushing higher,” said INTL FCStone analyst Edward Meir. “Gold still has some room to move higher as the dollar is weakening and that would be an offset to stabilizing stocks,” Meir said, adding if prices move above $1,300, it would reassure investors to add more long positions. The dollar index stood near two-and-a-half-month lows as investors grew increasingly convinced that the Federal Reserve will not raise interest rates in 2019 amid uncertainties over the US economy. On Friday, US central bank chief Jerome Powell told the American Economic As...
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