Gold steady as strong dollar offsets support from global growth woes

By: |
Published: May 30, 2019 7:22:12 AM

Gold prices were steady on Thursday as the dollar hovered near a two-year high, impeding the support from an exacerbated Sino-U.S. trade war bringing back doubts about global economic growth.

U.S. gold futures edged 0.1% lower to ,279.30 an ounce.U.S. gold futures edged 0.1% lower to ,279.30 an ounce.

Gold prices were steady on Thursday as the dollar hovered near a two-year high, impeding the support from an exacerbated Sino-U.S. trade war bringing back doubts about global economic growth.

FUNDAMENTALS
* Spot gold was broadly unchanged at $1,278.77 per ounce, as of 0110 GMT.
* U.S. gold futures edged 0.1% lower to $1,279.30 an ounce.
* The dollar held steady against its key rivals on Thursday as escalating Sino-U.S. trade tensions forced investors into the shelter of safe-haven assets, including government bonds and gold.
* Against a basket of six major currencies, the dollar inched 0.03% lower to 98.113, hovering within reach of a two-year high of 98.371 reached a week ago. The index is up more than 2% for the year.
* On the other hand, Asian stocks tracked Wall Street losses on Thursday as rhetoric from Beijing and Washington over trade matters kept alive investor concerns about the tariff war’s impact on global economic growth.
* China is ready to use rare earths to strike back in a trade war with the United States, Chinese newspapers warned on Wednesday in strongly worded commentaries on a move that would escalate tensions between the world’s two largest economies.
* The U.S. Defense Department is now seeking new federal funds to bolster domestic production of rare earth minerals and reduce dependence on China, the Pentagon said on Wednesday, amid mounting concern in Washington about Beijing’s role as a supplier.
* China’s Huawei Technologies Co Ltd has filed a legal motion seeking to declare a U.S. defense law unconstitutional, in the telecom equipment maker’s latest bid to fight sanctions from Washington that threaten to push it out of global markets.
* Earlier this month, the U.S. Commerce Department put Huawei on a trade blacklist that bans companies from doing business with the Chinese firm, a move which immediately disrupted the global tech sector.
* SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, said its holdings rose 0.48% to 740.86 tonnes on Wednesday from 737.34 tonnes on Tuesday.

Get live Stock Prices from BSE and NSE and latest NAV, portfolio of Mutual Funds, calculate your tax by Income Tax Calculator, know market’s Top Gainers, Top Losers & Best Equity Funds. Like us on Facebook and follow us on Twitter.