Gold ticks higher as subdued dollar, stocks boost appeal

Gold ticks higher as subdued dollar, stocks boost appeal

Gold prices extended gains for a fifth straight session on Tuesday, hovering near a two-week high hit in the previous session, as a sell-off in dollar and stock markets bolstered bullion's safe-haven appeal.

Spot gold was up 0.2% at $1,856.03 per ounce, as of 1013 GMT, after hitting its highest since May 9 of $1,865.29 on Monday. U.S. gold futures rose 0.4% to $1,855.30. The dollar is easing again and it will continue to support gold until there is some hawkish statement from the Federal Reserve, said Quantitative Commodity Research analyst Peter Fertig.

The greenback hit a one-month low, as a broad selloff in stock markets failed to boost the U.S. currency's safe-haven appeal. U.S. 10-year Treasury yields edged lower. "Gold is in a great space at the moment with almost all supporting markers favouring the yellow metal. U.S. 10-year TIPS has plateaued giving added impetus to gold upside because of the reduced cost of holding gold – traditionally an inverse relationship," DailyFX analyst Warren Venketas wrote in a note.

Gold is seen as a safe store of value during times of economic crises and hedge against inflation, but rising interest rates tend to weigh on non-yielding bullion. European Central Bank President Christine