Gold rebounds from 19-month low as dollar retreats

  • by Ahmed Mamdouh
  • August 16, 2018, 2:29 AM
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Gold started to rebound from its lowest level in 19 months hit on Thursday as the U.S. dollar retreated against a basket of major currencies thereby giving some room for gold prices to recover.

The precious metal is meanwhile trading at $1180.00 an ounce after falling to a trough of $1160.17 earlier in the session, the lowest level since January 4, 2017.

The dollar index retreated today to 96.44 after setting a new 14-month high on Wednesday at 96.85 on news of renewed trade talks between Washington and Beijing

China said on Thursday a delegation led by its vice commerce minister would travel to Washington for another round of talks about the trade dispute in late August.

The dollar has been taking advantage of the trade war concerns, as investors have been dealing with the greenback as a refuge.

The strength of the dollar has sapped demand on gold as an alternative investment, where gold has lost its characteristic of being a safe haven asset.  

Some emerging-market countries cut their holdings of US treasuries in June, data from the US treasury department showed on Wednesday.

Euro STOXX 600 augmented 0.25 percent to 380.64 after Asian shares snapped some of their losses before closing.

Regarding other precious metals, silver surged 1.18 percent to $14.62 an ounce, platinum soared 0.97 percent to $779.40 and palladium edged up 1.31 percent to $848.20.

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