Wednesday, May 18

Gold hovers near 2-month low as dollar stays elevated

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Gold prices weakened on Thursday

towards a two-month trough hit in the previous session, as the

US dollar steadied near five-year highs, hurting demand for

greenback-priced bullion.


* Spot gold was down 0.1% at $1,885.20 per ounce, as

of 0038 GMT. US gold futures were also down 0.1% at


* The dollar was nearing highs not seen in two decades on

Thursday as the energy crisis in Europe hamstrung the euro,

while the yen was undercut by expectations the Bank of Japan

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would stick to its super-easy policies.

* Measured against a basket of currencies, the dollar index

had reached a five-year top of 103.28 and a further push

above 103.82 would see it to levels not visited since late-2002.

* A stronger dollar makes greenback-priced gold less

attractive for other currency holders.

* The march higher in the dollar pushed gold prices to their

lowest since Feb. 24 on Wednesday.

* Bullion is seen as a safe store of value during economic

and political crises, a factor that seemed to limit losses on


* Europe should stop depending on Russia for trade after

Moscow halted gas supplies to Bulgaria and Poland for not paying

in roubles, Ukraine said, as the shutoff exposed the continent’s

weaknesses and divisions on Wednesday.

* Global demand for gold surged 34% year-on-year in the

first quarter to the highest in over three years, driven by

investors worried about Russia’s invasion of Ukraine and rising

inflation, the World Gold Council (WGC) said.

* Spot silver gained 0.1% to $23.31 per ounce,

platinum was flat at $917.77, and palladium firmed

0.3% to $2,209.71.


1200 Germany CPI Prelim YY April

1200 Germany HICP Prelim YY April

1230 US GDP Advance Q1

1230 US Initial Jobless Clm Weekly

(Reporting by Bharat Govind Gautam in Bengaluru; editing by


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