Gold rises to near 6-year high on dollar weakness, US-Iran tensions

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Published: June 25, 2019 7:41 AM

Spot gold was up 0.4% at $1,424.35 per ounce as of 0100 GMT, after hitting its highest level since August 28, 2013 at $1,428.54.

Gold prices, US sanctions on Iran, Xi Jinping, US-Iran tensions, G20 summit in Japan, Federal Reserve, SPDR Gold Trust, asian stocksU.S. gold futures rose 0.8% to $1,429.40 per ounce. (Reuters)

Gold prices rose to their highest level in nearly six-years on Tuesday as the dollar sat near multi-month lows and the announcement of fresh U.S. sanctions on Iran boosted interest in the safe-haven metal.


* Spot gold was up 0.4% at $1,424.35 per ounce as of 0100 GMT, after hitting its highest level since August 28, 2013 at $1,428.54.

* U.S. gold futures rose 0.8% to $1,429.40 per ounce.

Also read: Oil prices steady, US-Iran tensions remain in focus 

* U.S. President Donald Trump targeted Iranian Supreme Leader Ayatollah Ali Khamenei and other top Iranian officials with sanctions on Monday, taking a dramatic, unprecedented step to increase pressure on Iran after Tehran’s downing of an unmanned American drone.

* The dollar dropped to a three-month low against a basket of currencies on bets the U.S. Federal Reserve may lower interest rates more than once this year. {USD/]

* U.S. Treasury yields fell on Monday, holding just above almost three-year lows, ahead of trade talks between the U.S. and China later this week.

* Trump again criticized the Federal Reserve on Monday for not cutting interest rates, keeping up his pressure on the central bank to change its policies.

* Investors are focused on whether President Trump and Chinese President Xi Jinping can de-escalate the trade war between the two countries when they meet at the G20 summit in Japan.

* Trump is slated to meet one-on-one with at least eight world leaders on the sidelines of the G20 summit in Osaka, Japan, later this week, a senior U.S. administration official said on Monday.

* Asian stocks were left adrift on Tuesday as expectations of more dovish talk from the Federal Reserve pushed down Treasury yields and the dollar.

* Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, rose 0.37% to 801.96 tonnes on Monday from 799.03 tonnes on Friday.

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