Gold gains on weaker dollar, easing inflation concerns |
Gold gains on weaker dollar, easing inflation concerns
Gold prices rose on Tuesday, supported by a weaker US dollar and easing energy costs after US President Donald Trump suggested that the war in the Middle East could end soon.
Respite from a potential war-driven surge in inflation would likely reduce the chances of central banks raising interest rates, a positive for non-yielding gold.
Spot gold rose 0.5 per cent to $5,161.54 per ounce, as of 04:29 GMT. US gold futures for April delivery rose 1.3pc to $5,171.10.
The dollar fell 0.3pc, making greenback-priced bullion cheaper for holders of other currencies.
Gold prices rose “due to the news flow from US President Trump himself, stating that there is a potential for de-escalation… So what we could see is that potential inflation expectation starts to tone down given this dramatic fall in oil price,” said Kelvin Wong, a senior market analyst at OANDA.
Oil prices fell by more than 10pc following Trump’s comments.
But, he also warned that US attacks could........