Mubasher TV
Contact Us Advertising   العربية

Gold stabilises as dollar softens, trade hopes boost risk-on sentiment

Gold stabilises as dollar softens, trade hopes boost risk-on sentiment

Mubasher: Gold prices steadied on Monday as the dollar weakened on dim manufacturing survey data, while hopes of a trade deal between the US and China boosted risk-taking sentiment, denting in turn gains for the precious metal, according to Reuters.

By 8:33 am GMT, spot gold declined by 0.24% to $1,510.18 per ounce, while US gold futures ticked down by 0.01% to $1,511.20 per ounce.

Washington and Beijing on Friday said their talks yielded progress, while US officials said that a deal could be clinched this month.

Further, markets were optimistic on the back of economic data last week, which limited prospects of a slowdown which was fuelled by the protracted trade conflict between the world’s two biggest economies.

However, the latest report on US job growth showed a slower-than-expected hiring rate last October, while hiring in the preceding two months was stronger than showed by previous readings.

Asian stocks hit 14-month peaks on Monday, as mounting hopes over US-China trade and bright US job growth figures stoked appetite for riskier assets.

However, “in the short term, market sentiment is too good for investors to pay attention to gold,” CMC Markets analyst Margaret Yang Yan was quoted by Reuters.

Although the US dollar rallied on Friday after US payrolls report beat expectations, gains were wiped out by soft manufacturing survey data.

The US dollar index, which measures the greenback against six major rivals, inched up by 0.07% to 97.309, after hitting 97.107 on Friday, its lowest level in three months.

“Until and unless the trade war ends once for all, headlines on these negotiations will only have an interim effect on gold prices,” Geojit Financial Services commodity research head Hareesh V was quoted by Reuters.