MTECHTIPS:-Gold drifts lower as dollar turns positive

MTECHTIPS:-Gold drifts lower as dollar turns positive

MTECHTIPS – Gold prices traded higher on Wednesday, but eased from a five-month high, despite increased demand for safe-haven gold amid heightened geopolitical jitters. Gold for June delivery on the Comex division of the New York Mercantile Exchange added $1.05, or 0.09%, to $1,275.45 a troy ounce by 13:41 EDT. Gold rose to a five-month high of $1,281.75 earlier during the session. Risk-off sentiment has boosted demand for traditional safe-haven assets including gold, as investors sought refuge from the recent market volatility amid increased geopolitical concerns. U.S. – Russia relations remained in the political spotlight, as U.S. Secretary of State Rex Tillerson was expected in Moscow on Wednesday to meet with his Russian counterpart Sergey Lavrov and discuss a number of sensitive topics including the Korean peninsula, Syria and bilateral relations. The meeting between Tiller son and Lavrov, came fresh off the heels of comments from Russia President Vladimir Putin on Wednesday, after he said trust had eroded between the United States and Russia. Despite, an uptick in demand for the yellow metal, market participants expected gold prices to pull back from its current highs, on the back of a more hawkish Federal Reserve and a rise in the dollar. “The rise in gold prices is expected to be short-lived … and our panel largely sees gold prices falling from the current high, though divergent views persist. For Q 4, the maximum forecast is for gold to average USD 1,325 per troy ounce while the minimum forecast is for USD 1,070 per troy ounce”. Focus Economic Consensus noted in a report.
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