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Gold steady after 2 sessions of fall; strong dollar weighs on market
Gold prices steadied on Tuesday after two straight sessions of fall, but a strong dollar continued to weigh on the market amid renewed hopes of a U.S.- North Korean summit.
Spot gold XAU= was nearly unchanged at $1,297.31 per ounce at 0354 GMT, while U.S. gold futures GCcv1 for June delivery fell 0.5 percent to $1,296.90 per ounce.
"There seems to be a lack of conviction in the market, particularly after the North Korean summit... and that's come at a time when we are looking at another rate hike in the U.S.," said ANZ analyst Daniel Hynes.
"At the moment investors are sitting on the sidelines and are not really confident enough to put on any aggressive positioning."
Higher interest rates tend to boost the dollar, making greenback-denominated gold more expensive for holders of other currencies and denting its non-yielding appeal.
The dollar .DXY , which measures the greenback against a basket of six major currencies, stood at 94.333 after hitting a peak of 94.496 on Monday, its highest since Nov. 14, 2017.
"The yellow metal will look to consolidate above $1,300 to resume a push higher, while down-side support sits around $1,295," MKS trader Samuel Laughlin said in a note.
Call@9719026661
www.RoyalTraders.co
Best Accuracy For Royal Traders
Live News Update
Gold steady after 2 sessions of fall; strong dollar weighs on market
Gold prices steadied on Tuesday after two straight sessions of fall, but a strong dollar continued to weigh on the market amid renewed hopes of a U.S.- North Korean summit.
Spot gold XAU= was nearly unchanged at $1,297.31 per ounce at 0354 GMT, while U.S. gold futures GCcv1 for June delivery fell 0.5 percent to $1,296.90 per ounce.
"There seems to be a lack of conviction in the market, particularly after the North Korean summit... and that's come at a time when we are looking at another rate hike in the U.S.," said ANZ analyst Daniel Hynes.
"At the moment investors are sitting on the sidelines and are not really confident enough to put on any aggressive positioning."
Higher interest rates tend to boost the dollar, making greenback-denominated gold more expensive for holders of other currencies and denting its non-yielding appeal.
The dollar .DXY , which measures the greenback against a basket of six major currencies, stood at 94.333 after hitting a peak of 94.496 on Monday, its highest since Nov. 14, 2017.
"The yellow metal will look to consolidate above $1,300 to resume a push higher, while down-side support sits around $1,295," MKS trader Samuel Laughlin said in a note.
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