Gold Prices Surrender Gains After Record Run as Dollar Slide Pauses

Gold gave up gains on Tuesday after scaling record highs as the dollar NSE -0.51 % regained some ground, although simmering U.S.-China tensions and bets that the U.S. Federal Reserve would maintain its dovish policy stance kept demand solid for the metal. Spot gold was steady at $1,941.23 per ounce by 0707 GMT, but off its peak of $1,980.57 hit earlier, with the retreat also attributed to profit-taking. U.S. gold futures rose 0.2% to $1,935.10.

Silver dropped 0.7% after rising as much as 6.4% to $26.19 per ounce, its highest since April 2013. “A slight reversal in the dollar could have triggered nervous longs to bail out, but there’s been no change in the fundamentals whatsoever,” said Michael McCarthy, chief strategist at CMC Markets. “We’ve had a very steep rise over the previous eight sessions from $1,800 to all the way up to $1,980, and such a rise in any market in such a short period of time does make it vulnerable to pullback”…

View entirety: Economic Times