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Gold holds modest daily gains, above 1200 dollar per ounce as the dollar slides

2018-09-19 12:50 pm | Resource: News | No Views : 47



 Gold recovered some positive appeal on Wednesday and is currently trading above the $ 1,200 level near the upper limit of the narrow three-day trading range. Gold prices have been under pressure since the beginning of the year and have fallen 12% since April amid rising interest rates and a growing trade dispute between the United States and China.

After yesterday's modest recovery attempt, the US Dollar resumed its bearish decline and was seen as one of the main factors benefiting dollar-denominated commodities - such as gold. As the dollar fell after Beijing on Tuesday announced retaliatory fees targeting more than 5,000 US products worth $ 60 billion. China's Ministry of Finance said in a statement that the new fees would go into effect on Sept. 24. The country's Ministry of Commerce also filed a complaint with the World Trade Organization (WTO) against the United States, according to reports.

, The latest trade tariff between the US and China seems to have fueled expectations of rising inflationary pressures in the US economy, and the same is clear from the continued boom in yields on US Treasuries. Indeed, the 10-year benchmark yield has risen above 3.0%, hitting its highest level since late May, coupled with a tightening of federal interest rate expectations that could keep a lid on any huge rise in non-yielding yellow metal.

Moreover, the continued improvement in investors' appetite for high-risk assets, as evidenced by the positive sentiment in the European equity markets, which tends to influence safe haven status for precious metals, may increase cooperation towards gains.
 
  • The dollar index, which tracks the greenback against the basket of other currencies, fell 0.07% to 94.16.
  • Gold futures for December delivery rose 0.5% to $ 1,208.70 per ounce (0600 GMT) on the New York Mercantile Exchange.


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