Gold eases from 1-week high as dollar nudges up

Gold eases from 1-week high as dollar nudges up

Gold prices inched lower on Tuesday, moving away from a one-week high hit in the previous session, as the dollar rebounded amid the European Union parliamentary election results and simmering Sino-US trade tensions.

Markets were mostly subdued in the previous session following the closure of financial markets in the UK and the United States.

Spot gold was down 0.2per cent at $1,282.90 per ounce, as of 0146 GMT, after touching its highest since May 17 at $1,287.32.

US gold futures were down 0.1per cent at $1,281.80 an ounce.

Against a basket of six peers, the dollar gained 0.2per cent to 97.780 after touching its lowest since May 16 at 97.546 on Friday.

The dollar nudged up against its key rivals in early trade on Tuesday as investors waited on more catalysts after the European Union parliamentary elections showed a polarisation of the 28-member block.

Pro-European parties retained a firm grip on the EU parliament, provisional results from the bloc’s elections showed on Monday, though euroskeptic opponents saw strong gains.

On Monday, US President Donald Trump in a news conference with Japanese President Shinzo Abe said he was “not ready to make a deal with China”, the latest blow to beliefs that the two countries might reach a deal soon.

China on Friday denounced US Secretary of State Mike Pompeo for fabricating rumours after he said the chief executive of China’s Huawei Technologies Co Ltd was lying about his company’s ties to the Beijing government.

Furthermore, a weak US manufacturing activity data coupled with a dip in new orders for US-made capital goods last week ignited worries that the trade conflict may hurt the world’s largest economy, lifting investor expectations for a US rate cut.

China’s net gold imports via main conduit Hong Kong in April rose 20.5per cent from the previous month to their highest levels since July 2018, Hong Kong government data showed on Monday.

Mali has suspended the informal practice of gold dredging for one year and gold panning for three months for environmental reasons, starting June 15, the mines ministry said on Monday.

Disclaimer: This information has been collected through secondary research and TJM Media Pvt Ltd. is not responsible for any errors in the same.