Gold hits near 1-week high as easing trade concerns hurt dollar

Gold edged up to hit its highest in nearly a week on Thursday as the U.S. dollar slumped, its safe-haven appeal lessened by reduced fears over the near-term impact of Sino-U.S. trade tensions.MCX Service

The dollar hit a nine-week low against a basket of major currencies, while world stocks bounced up amid continued relief that fresh U.S. and Chinese tariffs on reciprocal imports were less harsh than originally feared.

Spot gold gained 0.2 percent at $1,205.89 per ounce by 1:36 p.m. EST (1736 GMT), having hit its highest since last Friday at $1,028.31. U.S. gold futures for December delivery settled up $3, or 0.3 percent, at $1,211.30 per ounce.

“America is killing itself with these trade tariffs. (They) actually hit America far harder than (they) hit China. The idea that the dollar is all mighty and going to continue to rise is not true,” said Alasdair Macleod, head of research at

“Gold traders are sitting on short positions (but) if the dollar comes down another notch or two, shorts in gold will start to panic. When gold starts moving, it (could) start moving very sharply (higher).”

A weak dollar makes dollar-priced gold cheaper for non-U.S. investors.

Investors have been buying the dollar and selling gold in recent months believing the United States has less to lose from a trade dispute than China. But they may be losing faith in the ability of the U.S. economy to withstand a full-blown trade war with China.

A new Reuters poll showed unanimous agreement that a trade war with China was a bad economic policy for the United States, predicting U.S. growth would slow to 2.0 percent in the fourth quarter, less than half the last reported rate of 4.2 percent.

“If that trade war actually drags out, you could see worries in the markets. That typically drives investors to precious metals,” said Chris Gaffney, president of world markets at TIAA Bank.

“Also, it’s inflationary. With additional and extended tariffs, prices to consumers rise, because the tariffs get passed along. That is also supporting precious metals.

Spot silver increased 0.5 percent to $14.27 an ounce, after touching two-week highs at $14.35. Palladium climbed 1.4 percent to $1,048.49 per ounce after earlier hitting a fresh five-month high of $1,054.80.

Platinum gained 1.4 percent at $832.70 per ounce, after hitting its highest since July 10 at $834.60.

Indian Stock Market- Get profitable Equity, MCX Service, HNI & Currency Services with good call accuracy. BSE Sensex & Nifty50. Our market researchers track the share positions and give the best call accuracy to customers.

For 2-Day’s Free Trial>> Free Trial

Check Our Call Accuracy>> Past Performance

Contact Us: – 9644405056

Please follow and like us:

About admin

The stock market refers to any market arena where dealings of securities including equities, bonds, currencies, and derivatives occurs. Ripples Advisory Private Limited, Indore is the one who undertakes a wide range of competence, and our client’s services are boosts by our knowledge of regional risks and markets to inform the quirky financial, risk managing and regulatory appeals that they face.
View all posts by admin →