Gold’s gains kept in check by growing risk appetite

SourceZawya
SectorOil & Gas
CountryMiddle east

Gold prices rose to their highest in more than a week on Tuesday, supported by an easing dollar and lower U.S. Treasury yields, though firmer appetite for riskier assets kept bullion's advance in check.Spot gold rose 0.1% to $1,729.30 an ounce by 0837 GMT after hitting its highest since March 25 at $1,738.32. U.S. gold futures gained 0.2% to $1,731.50."A softer dollar is the main reason for the bid coming into gold ...

and also the yields, which during the past week have not done a great deal," said Saxo Bank analyst Ole Hansen.Making gold affordable for other currency holders, the dollar dropped to its lowest in almost two weeks against a basket of rivals while benchmark U.S. Treasury yields slipped. However, risk sentiment in wider financial markets remained upbeat, with global equities at record highs on strong economic data from China and the United States, reducing demand for safe-havens assets such as gold. "For the gold story to return to a...read more...