The defeated USD sends gold to fresh highs

Helen Rush
Helen Rush
Senior Analyst – Capital Markets •

Gold prices continue to get support from weaker U.S. dollar which hit fresh three-year lows overnight. A new selling wave that gripped the greenback was on the back of comments from US Treasury Secretary Steven Mnuchin who welcomed a weaker national currency.

  Gold prices continue to get support from weaker U.S. dollar which hit fresh three-year lows overnight. A new selling wave that gripped the greenback was on the back of comments from US Treasury Secretary Steven Mnuchin who welcomed a weaker national currency. Another USD’s plunge has strengthened demand for gold.
  Besides, the positive tone of the precious metal was supported by President Donald Trump, who approved imposing import tariffs on washing machines and solar panels. This step has resumed market concerns over the Washington’s protectionist policy stance and triggered an even bolder demand for gold as a safe haven. 
  As a result, the prices are trading at the highest levels since August 2016. Earlier today, the metal touched $1.366,01 where faced a selling interest on the back of profit-taking at very attractive levels. Despite the local correction, the bullish potential is not yet exhausted, considering there are so far no factors on the horizon that could support the dollar’s rebound. So, the current retreat in gold prices may open interesting opportunities for reentering the bullish market in the medium term.

 

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