Gold At Highest In More Than Five Months

  • Gold At Highest In More Than Five Months

Gold At Highest In More Than Five Months

Gold has been well-supported in recent sessions as market players sought shelter in safe-haven assets ahead of the upcoming French presidential election on Sunday and amid heightened geopolitical tension between the US and North Korea.

Gold futures went up 2.20 dollars or 0.17 percent to close at USD 1,294.10 per troy ounce at the COMEX division of the New York Mercantile Exchange. "Prices should adjust and rise again", said a Shanghai-based trader.

The precious metal extended gains into the fourth consecutive session Monday, as worries.

"And compared to US bond yields, which have given up much of their gains after the election, USA share prices, having gone through a limited correction, look vulnerable given potential developments in North Korea or the French election", she said.

Spot gold fell as low as $1,275.73 per ounce, and was trading at $1,279.91 per ounce, down 0.7pc by 1445 GMT. A stronger greenback makes dollar-denominated assets such as gold more expensive for holders of other currencies. "(U.S. President Donald) Trump is talking it down and we're seeing weakness creep into U.S. data, changing the perception of how much rates have to rise".

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US stocks rose after three straight days of losses.

US Vice President Mike Pence said on Wednesday that Washington would work with its allies and China to put economic and diplomatic pressure on North Korea but added that America would defeat any attack with an "overwhelming response". "Investors are still using gold for insurance and defensive positioning because there are concerns over equity valuations and politics", said ETF Securities analyst Martin Arnold.

That view is not universal: Bloomberg reported last year's leading metals analyst as saying gold could hit $1,350 by year end following continued global tensions and political variables. The dollar also lost ground versus the sterling on Tuesday after British Prime Minister Theresa May called for an early election on June 8.

The dollar index, which tracks the greenback against a basket of six rival currencies, edged up 0.2% to 99.62, pulling away from Tuesday's low of 99.36, its deepest trough since March 28.