Gold heads to recover from one-week low as dollar tumbles

2019-04-12 14:48:22 GMT (Economies.com)
Gold heads to recover from one-week low as dollar tumbles

Gold prices edged higher on the European market on Friday, to try to recover from yesterday's low, based on the dollar's slide against a basket of currencies, while prices remain under pressure from slower investment demand for safe assets.

 

As of 08:45 GMT, gold prices rose 0.1% to trade at $1,293.53 per ounce from the opening of $1,292.45, with a high of $1,294.34 and a low of $1,291.17.

 

Gold prices yesterday lost 1.2%, its first loss in four days, and the lowest level in a week at $1,289.66 an ounce, after strong economic data in the United States.

 

The dollar index fell 0.3% on Friday, reversing all of yesterday's gains, reflecting the greenback drop against a basket of currencies, which currently provides support for the price of gold and other metals denominated in US dollars.

 

The dollar dropped after 10-year US Treasury yields fell to 2.50% again, as the Federal Reserve is likely going to suspend US interest rate hikes this year.

 

However, gold prices are facing negative pressure, as investment demand on safe assets slows, as fears of a global economic slowdown eased after strong data on China's trade balance in March and strong data on inflation and unemployment rates in the United States.

 

Gold holdings in the SPDR Gold Trust Fund, The world's largest gold-backed funds, remained unchanged for the second day in a row at 757.85 metric tons, in the lowest level since 7 November 2018.

 
 
 
  Symbol Last Change Chg.%
1.1221
-0.0052
0.4599%
1.2503
-0.0072
0.5722%
16.211
0.993
6.525%
55.748
-4.585
7.600%
62.83
1.06
1.72%
1425.365
9.870
0.697%
 
 
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