Gold gains some ground, but rate hike views weigh on market - Highlight Investment Research

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Wednesday, 29 August 2018

Gold gains some ground, but rate hike views weigh on market

Gold prices edged higher on Wednesday after the previous session's sharp fall, but rising U.S. interest rates and lingering Sino-U.S. trade tensions continued to weigh on the market with investors selling the metal at small rallies.
Spot gold was up 0.3 percent at $1,204.64 an ounce at 0329 GMT. Prices hit their highest since Aug. 10 at $1,214.28 on Tuesday, but closed 0.8 percent lower as U.S. Treasuries rose after the United States and Mexico struck a trade deal.
"The selling (on Tuesday) shows nobody wants to chase the metal above $1,210 ... There is going to be interest rate hikes in September and December, and that is acting as a burden for gold," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.
Gold has lost its appeal as a safe-haven asset, having fallen 7.5 percent this year, amid international trade disputes and the Turkish currency crisis, with investors increasingly turning to the dollar instead.




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