Gold prices steady on weaker dollar

BENGALURU: Gold prices were largely steady on Tuesday, after posting a fresh low for the year-to-date in the previous session, as the US dollar took a breather from its recent rally to trade below a five-month high.


Spot gold was nearly unchanged at $ 1,292.66 per ounce, as of 0044 GMT. In the previous session, it slid to $ 1,281.76, its lowest since Dec. 27.

US gold futures for June delivery climbed 0.1 per cent to $ 1,292.50 per ounce.

The dollar index , which measures the greenback against a basket of six major currencies, was 0.2 per cent lower at 93.478. The dollar had advanced to a five-month high against a basket of currencies on Monday, as news of a truce between the United States and China on trade tariffs prompted investors to pare back short positions on the greenback.

Asian shares extended gains on Tuesday on renewed optimism about global growth as the United States and China agreed to drop their tariff threats, while oil climbed to multi-year peaks over political uncertainty and potential sanctions in Venezuela.

Washington and Beijing both claimed victory on Monday as the world’s two largest economies stepped back from the brink of a global trade war and agreed to hold further talks to boost US exports to China.

US President Donald Trump said China had pledged to buy “massive amounts” of American agricultural products but gave no other details about planned commitments from Beijing following US-China trade talks last week.

Critics at home and abroad on Monday denounced the re-election of Venezuela’s socialist President Nicolas Maduro as a farce cementing autocracy, while the US government imposed new sanctions on the crisis-stricken oil-producing country.

The United States on Monday demanded Iran make sweeping changes – from dropping its nuclear programme to pulling out of the Syrian civil war – or face severe economic sanctions as the Trump administration hardened its approach to Tehran.

Rising inflation means the US Federal Reserve should hike interest rates two or possibly three more times this year, and could move as soon as next month, Philadelphia Fed President Patrick Harker said on Monday.

The Bank of Japan on Monday won approval from influential members of the government’s leading advisory panel for its decision to abandon the time frame it had set for meeting its inflation target.

SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 0.38 per cent to 852.04 tonnes on Monday from 855.28 tonnes on Friday.