🤑 It doesn’t get more affordable. Grab this 60% OFF Black Friday offer before it disappears…CLAIM SALE

PRECIOUS-Gold eases as dollar hovers near 2-year high

Published 2019-04-24, 09:28 p/m
PRECIOUS-Gold eases as dollar hovers near 2-year high
XAU/USD
-
GC
-
GLD
-
DXY
-

April 25 (Reuters) - Gold prices eased on Thursday as the dollar remained near a two-year high hit in the previous session, while a dip in equities and weak data from Germany augmented worries about the pace of global growth and cushioned losses in the safe-haven bullion.

FUNDAMENTALS

* Spot gold XAU= was down 0.1 percent at $1,274.21 per ounce, as of 0106 GMT.

* U.S. gold futures GCv1 slipped 0.2 percent to $1,276.40 an ounce.

* The euro nursed losses against the dollar on Thursday after dipping to a 22-month low on a surprise drop in a leading indicator for economic activity in Germany, amplifying worries of a growth slowdown in Europe's largest economy. FRX/

* The dollar rallied to a 23-month high of 98.189 against a basket of key rivals .DXY .

* Asian shares eased in early trade on Thursday after data showed a surprise deterioration in German business morale, raising fears of slowing global growth and weighing on a gauge of world equity markets, including Wall Street. MKTS/GLOB

* German business morale deteriorated in April, bucking expectations for a small improvement, as trade tensions hurt the industrial engine of Europe's largest economy, leaving domestic demand to support slowing growth. Gold is often used as a hedge against economic and political uncertainties.

* The Bank of Canada held interest rates steady on Wednesday as expected but removed wording around the need for future hikes and lowered its growth forecast for 2019, cementing the market's view that further increases are off the table for now. U.S. Treasury yields were lower across maturities on Wednesday as investors piled into the safe-haven government bonds following a dovish report from Canada's central bank, weak data from Germany and Australia, and solid demand at auction for $41 billion of new five-year notes. US/

* Billions of dollars' worth of gold is being smuggled out of Africa every year through the United Arab Emirates in the Middle East – a gateway to markets in Europe, the United States and beyond – a Reuters analysis has found. SPDR Gold Trust GLD , the world's largest gold-backed exchange-traded fund, said its holdings fell 0.23 percent to 747.87 tonnes on Wednesday from 749.63 tonnes on Tuesday. GOL/ETF

* Iranian Foreign Minister Mohammad Javad Zarif does not believe U.S. President Donald Trump wants war with Iran, but he told Reuters on Wednesday that Trump could be lured into a conflict. AHEAD (GMT)

* 1230

U.S.

Durable Goods

March

* 1230

U.S.

Initial Jobless Claims

weekly

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.