Gold see-saws on robust dollar strength and global growth worries

GOLD prices continue to trade sideways this week as investors balance between robust US dollar performance and prevalent market risks. The precious metal with its status as a non-interest yielding asset has come under bearish pressures from an extended bull run in global stock markets.

Dovish signals on monetary policy by global central banks have further cemented greenback strength as investors contemplate on wider global interest rate differentials. Rising expectations on a successful resolution between US-China trade negotiations further nourished risk-on sentiments whilst diminishing bullion appeal as risk-on appetites rose this week.

The safe haven asset, though experiencing headwinds from enhanced US dollar vigour, remains fundamentally supported on weaker US economic data and heightened geopolitical risks in the current term.