You are here
Gold hits 1-wk peak; global trade woes, lower US yields support
[BENGALURU] Gold prices climbed over 1 per cent to hit a one-week high on Wednesday, helped by a subdued dollar as renewed concerns over global trade encouraged safe-haven demand and drove down US yields.
Spot gold rose 1.1 per cent at US$1,433.50 per ounce at 0144 GMT. Prices earlier touched US$1,435.99, the highest since June 25.
US gold futures were up 2.1 per cent at US$1,437.7 an ounce.
The dollar index, which measures the currency against a basket of six rivals, was down 0.1 per cent.
White House trade adviser Peter Navarro said on Tuesday US trade talks with China are heading in the right direction and it will take time to get the right deal made.
The European Union said on Tuesday it was open to talks with Washington in a dispute over aircraft subsidies while preparing retaliation after US added olives, Italian cheese and Scotch whisky to a list of goods in line for hefty tariffs.
Cleveland Fed President Loretta Mester on Tuesday expressed skepticism that a US interest rate cut is the right move until there are more signs the economy is moving to a truly weaker path.
US interest rate futures extended their earlier gains on Tuesday, as traders raised their bets the Federal Reserve would lower borrowing costs by 50 basis points at end of July following comments from Bank of England Governor Mark Carney.
Mr Carney said a global trade war and a no-deal Brexit were growing risks to Britain's economy which might need more help to cope with a downturn, prompting investors to increase their bets on a BoE interest rate cut.
SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, said its holdings fell 0.22 per cent to 798.44 tonnes on Tuesday from 800.20 tonnes on Monday.
India's gold imports rose 12.6 per cent in June from a year earlier to US$2.69 billion amid a jump in global prices to six-year highs, a government source said on Tuesday.