Fundamental Comment

Gold sets new 6-year peak on weakening dollar

Gold sets new 6-year peak on weakening dollar

Gold rose more than one percent on Tuesday, before snapping part of the gains, but prices remained near the highest level in six years as the dollar falls to the lowest level in several months.

Meanwhile, the precious metal is heading for gains for the 6th consecutive session, amid rising haven demand on the back of the escalating tension between the United States and Iran.

Spot gold prices rose 1.27 percent to $1436.15 an ounce, as of 09:24 GMT, while the precious metal touched $1438.63 earlier in the session, the highest level since May 14, 2013.  

The dollar index, which traces the performance of the U.S. currency versus a basket of six currencies, fell to the lowest level in three months at 95.843 after it lost 1.7 percent over the previous five sessions.

Regarding other precious metals, silver fell 0.3 percent to $15.440 an ounce, while platinum settled at $809.93 dollars per ounce.

Palladium slumped 0.35 percent to $1523.80 an ounce, where the metal record earlier in the session $1545.87 an ounce, which is the highest level since March 27.

Oppositely, Asian stocks dropped today on risk aversion, as the Japanese Nikkei index surrendered 0.43 percent to close at 21,193.81 points, while the Topix index shaved 0.3 percent to 1543.5 points.

Besides, the shares of leading companies on the Japanese stock exchange fell as the yen strengthened against the U.S. dollar.

The yen jumped to the highest level in almost six months against the dollar due to the mounting tensions between the United States and Iran.

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