Gold falls as dollar hits 2018 high

Gold falls as dollar hits 2018 high
Gold has been under pressure over the last 3 weeks with the dollar having rallied around 4.5 per cent.

london - Market awaits Trump decision on Iran nuclear deal



Gold slipped on Tuesday as the dollar surged to a new 2018 high against its rivals, though losses were limited by worries the United States may be set to pull out of a key nuclear accord with Iran.

US President Donald Trump was expected to announce at 1800 GMT whether Washington will withdraw from a deal that eased economic sanctions on Iran in exchange for Tehran limiting its nuclear programme.

A decision to leave the accord could raise risk aversion in the broader markets, helping gold.

Still, gold has been under pressure over the last 3 weeks with the dollar having rallied around 4.5 per cent.

"A stronger dollar has created headwinds for gold but we don't see the dollar going much higher on a medium term basis and in terms of geopolitics, there are some factors to keep an eye on," said Jens Pederson, senior analyst at Danske Bank.

Spot gold was down 0.3 per cent at $1,309.57 per ounce at 1016 GMT. The precious metal has lost some 3.5 per cent of its value over the last 3 weeks.

US gold futures for June delivery were down 0.3 per cent at $1,309.80 per ounce. - Reuters


More news from Business
Luxury vrooms again

Business

Luxury vrooms again

This year the #NoFilterDXB witnessed a dazzling array of replica vehicles from some of Hollywood’s most classic movies and TV shows.

Business3 days ago