Gold prices rose on Thursday as a rally in the U.S. dollar showed signs of fatigue after the currency hit its highest in nearly 14 years against a basket of currencies the day before.
Spot gold was up 0.3 percent at $1,228.47 an ounce at 0812 GMT, after dropping 0.25 percent in the previous session. U.S. gold futures rose 0.33 percent to $1,228.00 an ounce. The dollar index, which measures the greenback against a basket of major currencies, slipped 0.23 percent to 100.180, as moderate U.S. inflation data drove a flattening of the U.S. Treasury yield curve.
The index climbed to 100.57 on Wednesday, which was its highest since April 2003, after a week-long rally mainly driven by the post-election surge in U.S. bond yields as traders bet President-elect Donald Trump’s administration will adopt inflationary policies. “The dollar was higher and gold was sold. Now, the dollar has given away gains and gold is steady,” said Yuichi Ikemizu, head of commodity trading at Standard Bank in Tokyo.
Source: Reuters UK