Sunday, 24 September 2017
Latest news
Main » Gold falls as U.S. dollar rebounds

Gold falls as U.S. dollar rebounds

20 April 2017
Gold falls as U.S. dollar rebounds

Spot gold had risen 0.7 per cent to US$1,293.90 (RM5,709.33) per ounce by 0030GMT, after hitting their highest since early November at US$1,295.42.

The dollar dipped fractionally versus the yen, with worries that U.S. currency manipulation complaints could touch Japan, overshadowing comments by U.S. Treasury Secretary Steven Mnuchin that a strong dollar was positive in the long term.

"As (gold) didn't manage to get through $US1,300 and due to light volumes during (holiday-related) European hours, gold consolidated until weaker USA economic data gave the yellow metal another push", said Giovanni Staunovo, commodity analyst for UBS Wealth Management.

The dollar slipped to as low as 108.13 yen, a five-month low and 0.4 percent below its late USA levels.

Gold prices rose to a fresh five-month high Monday, helped by a weaker US dollar and continued concerns over geopolitical risk. He warned North Korea on Monday that recent American military strikes in Syria and Afghanistan showed President Donald Trump's resolve should not be questioned, but Pyongyang vowed to continue missile and nuclear tests.

Spot silver dropped 0.5pc to $18.13 per ounce.

"The whole situation for gold is more than optimistic because of the geopolitical tensions aroused by North Korea and with the interest rate hike expectations coming down", said Mark To, head of research at Hong Kong's Wing Fung Financial Group.

With the first round of France's presidential election on April 23, an unpredictable outcome is pushing some pollsters to calculate the most extreme runoff scenarios after Trump's surprising US presidential win in November and Britain's unexpected exit from the European Union in July.

A potential nuclear war has added to the increasingly unsettled situation in the Middle East, the unfolding fallout from Brexit, and general uncertainty over the future of the European Union and a Donald Trump-led United States to give the gold price a boost of late.

Uncertainties over Mr Trump's policy towards North Korea have been growing since the US Navy fired 59 Tomahawk missiles at a Syrian airfield on April 6.

"Gold is trading with an upward bias with the US$1,300 level just in sight".

Gold prices are expected to touch Rs 29,700 per 10 grammes as per market analysts.