Finance

Dollar dips, gold gains on global risks; U.S. stocks bounce

Dollar dips, gold gains on global risks; U.S. stocks bounceā€

Gold for June delivery climbed 0.3% to $1,291.90 a troy ounce on the Comex division of the New York Mercantile Exchange, closing at the highest since November 4.

Tensions between the USA and North Korea weighed on the dollar, supporting prices for the precious metal, which is traded in the greenback.

The dollar dipped fractionally versus the yen, with worries that U.S. currency manipulation complaints could touch Japan, overshadowing comments by U.S. Treasury Secretary Steven Mnuchin that a strong dollar was positive in the long term.

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.

S&P 500 mini futures declined 0.15 percent to 2,324, edging near a six-week low of 2,317.75 touched in late March following U.S. President Donald Trump's defeat on healthcare reform.

A jump in the pound to a five month high of $1.29 following Theresa May's announcement of a snap general election yesterday, saw the gold price adjust to $1,283 this morning having previously hit $1,291.98 an ounce yesterday.

Gold was trading higher in early trade on Monday after the dollar weakened with investors going for fresh positions in safe-haven assets in the wake of rising geopolitical tensions over North Korea.

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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.

Uncertainties over Trump's policy towards North Korea have been growing since the U.S. Navy fired 59 Tomahawk missiles at a Syrian airfield on April 6. With the rise above the $1,265 level, gold has confirmed it is solidly in a long-term bull market.

"Ultimately we think the [dollar] rally can resume as markets start to focus on stronger USA growth driven by capital expenditure which could drive inflation higher", said Morgan Stanley analysts in a note.

The dollar index advanced 0.3pc while European shares rose.

Platinum fell 0.1% to US$972.45, while palladium was down 0.3% at US$772.



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