Yahoo Finance Gold Hits One Month Low As Dollar Gains Amid Subdued Risk Appetite in Equity Markets
The dollar is gaining strength after last week’s Fed meeting and positive U.S. economic data, which is weighing on non-yielding assets like gold.
The greenback climbed near to 16-month peak earlier in the session, making bullion more expensive for holders of other currencies. The dollar index DXY, which measures the greenback against a basket of six major currencies, was up 0.5% on the day supported by concerns of the global economic slowdown, weak Chinese economic data, Brexit uncertainties and Italian budget woes in EU. As of writing this article, Spot Gold XAUUSD is trading at $1205.71 an ounce down by 0.33% on the day while US Gold futures GCcv1 is trading at $1205.60 an ounce down by 0.24% on the day.
Proceedings of Geo-Political Events Added Fuel To Dollar’s Momentum
The yellow metal has fallen more than 11% from its April peak after investors preferred the dollar as the U.S.-China trade war unfolded against a background of higher U.S. interest rates. While proceedings of geopolitical events helped gold initiate a bullish rally on multiple occasions, US Greenback has managed to put a damper in its momentum each time as long-term outlook for gold remains positive supported by upbeat US macro data and prospect for multiple rate hikes by fed in months to come.
Spot Silver XAGUSD is trading near flat at $4.16 an ounce up by 0.08% on the day. However, decreased risk appetite among global investors resulted in some activity surrounding safe haven instruments which helped limit the downside move of precious metals.
US crude prices closed lower for a 10th straight day on Friday, netting the benchmark its longest losing streak on record as further signs of rising output and supplies triggered another day of selling in the oil market.
Meanwhile, Iran sold 700,000 barrels of crude oil to private companies for export on Sunday in the second round of sales aimed at countering U.S. sanctions on the country’s exports, oil ministry news website SHANA reported. However, Oil prices jumped more than 2%0 on Monday after top exporter Saudi Arabia announced a supply cut in December and other producers also considered reductions heading into 2019. Saudi Arabia plans to reduce oil supply to world markets by 500,000 barrels per day (bpd) in December as per comments from Energy minister on Sunday. Spot Crude WTIUSD is currently trading at $60.98 per barrel up by 2.55% on the day.
This article was originally posted on FX Empire
