Gold strengthens due to a sluggish dollar

Gold prices on the rise

The price of gold edged up on early Thursday, recovering from its weakest level this year from the last settlement. This came in after the U.S. dollar’s recent decline and geopolitical turmoils.

Looking at prices, U.S. gold futures inched up by 0.1 percent to finish at $1,292.80 an ounce. Spot gold advanced by 0.25 percent to settle at an ounce. Spot touched its weakest level since December 27 on the previous day at $1,286.20 an ounce.

In relation to the yellow metal’s movement, the U.S. dollar dropped against its major opposing currencies on Thursday after hitting a 2018 high overnight. It is already given that gold will benefit from the greenback’s decline because it will make the non-yielding bullion cheaper hor holders outside the United States. This will strengthen the demand.

The recent geopolitical uncertainties have also influenced gold. U.S. President Donald Trump acknowledged yesterday that it was not quite clear if its summit with North Korea would push through, following the threat of Pyongyang to pull out from the meeting. Turmoils like this are also good for the bullion because it is perceived as a safe-haven asset.

In other precious metals: palladium jumped by 0.3 percent at $986.15 an ounce, palladium added more than 0.5 percent at $892.30 an ounce after notching its lowest level in five months of $883.50 on the previous day, and spot silver rose by 0.4 percent at $16.41 per ounce.

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