Gold Pinned Near Six-Month Lows

Gold prices edged lower on Monday, pressured by a strong US dollar amid the prospect of higher interest rates, while global trade tension kept the metal buoyed above a six-month low hit last week. Spot gold was 0.1% lower at $1,267.23/oz, while US gold futures were down 0.2% at $1,268.80/oz, Reuters reported. “There are specific factors that will actually push the dollar higher, given the trade tensions as well as the booming US economy versus other economies,” said OCBC analyst Barnabas Gan. “Gold prices are very much influenced by the dollar movement rather than anything else. It’s less of a safe-haven demand into gold but rather a reaction to dollar strength.” Gold usually gains from political and economic tension, but has struggled this time around as the dollar has risen strongly, making the dollar-priced metal costlier for non-US investors. Gold prices hit a six-month low last week, weighed down by a firm dollar and as the Fed kept its outlook for higher interest rates. In other precious metals, silver was down 0.6% at $16.34/oz. Platinum fell 0.2% to $871.49/oz and palladium was 0.3% lower at $954.10/oz.