Gold is firmer as weak US numbers reignite the hope of a rate cut
Spot gold on track for weekly gain of 0.5% as weak US data pushes the dollar off two-year highs
Gold prices held steady on Friday after rising above $1,280/oz in the previous session as weak US data pushed the dollar off two-year highs and reignited hopes of a rate cut by the Federal Reserve in 2019. Spot gold was steady at $1,283.56/oz by 4.15am GMT, after rising as much as 1.1% to a one-week peak of 1,287.23 in the previous session. The metal has risen 0.5% so far this week. US gold futures for June were down 0.2% at 1,283.10. “Gold has found a very good support around $1,270. There was some short covering after the [weak US] data that pushed prices up. However, the upside could be limited as $1,290 is acting as a strong resistance,” said Peter Fung, head of dealing at Wing Fung Precious Metals. The US dollar retreated after hitting its highest level in two years as weak domestic data and the potential economic fallout from the trade war with China increased expectations for an interest-rate cut this year.
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