Gold eases as placid Fed supports dollar, dents demand for bullion

Gold eases as placid Fed supports dollar, dents demand for bullion

21 May 2019 10:00 AM
 

Gold eased on Tuesday after touching a more than two-week low in the previous session, as increasing bets that the U.S. Federal Reserve will not cut interest rates this year boosted the dollar which usurped bullion's safe-haven appeal.

Spot gold fell 0.2% to $1,275.61 per ounce. Last session, gold dipped to a more than two-week trough of $1,273.22. U.S. gold futures also eased 0.2% to $1,275.20 an ounce.

The dollar held near a 2-1/2-week high on Tuesday, supported by higher U.S.-yields and as intensifying trade frictions between the United States and China boosted appetite for the safe-haven greenback.

 Fed Chair Jerome Powell said on Monday it was "premature" to ascertain the impacts of trade and tariff on the trajectory of monetary policy instead enunciating that recent economic data pointed towards a healthy supply side.

Gold, which is generally considered a safe-haven asset, has shrugged most news of escalating tensions, much to the bulls' dismay, analysts said.

Markets now await the Fed minutes due on Wednesday, which will provide insights into the May 1 meeting by the central bank.

 Among other precious metals, silver fell 0.2% to $14.44 an ounce.  Platinum dipped 0.2% to $809.80, while palladium rose 0.2% to $1,331.35.

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