Sunday, January 16

Gold subdued after Trump’s discharge, weak dollar cap losses


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Gold prices eased on Tuesday, as equities

gained following US President Donald Trump’s discharge from

hospital after treatment for a coronavirus infection, though a

softer dollar cushioned the bullion’s further decline.

Spot gold fell 0.1% to $1,910.50 per ounce by 0722

GMT. It had hit $1,918.36 on Monday, highest since Sept. 22.

US gold futures were down 0.1% at $1,917.80.

“Equities are trading well today and because of that we are

seeing limited move in gold,” said Vandana Bharti, assistant

vice-president of commodity research at SMC Comtrade.

However, “the dollar is on a backfoot and that could prompt

some buying to return in gold… As long as gold is above the

$1,900 we can expect some recovery in bullion.”

Asian stock markets rose to a two-week high after the US

president returned to the White House from hospital following

treatment for COVID-19 and on rising prospects for a fresh US

stimulus package.

However, the severity of Trump’s illness has been the

subject of intense speculation.

US House Speaker Nancy Pelosi and Treasury Secretary

Steven Mnuchin were preparing to continue talks on the new

coronavirus relief package again on Tuesday.

Gold was also weighed down by mild profit-booking, analysts



financialpost.com