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Gold prices subdued as dollar hovers around 4-mth peak
Gold prices remained subdued on Tuesday as the dollar held steady near its 2018-high on the relative strength of the U.S. economy.
Spot gold XAU= was down about 0.1 percent at $1,313.20 per ounce at 0635 GMT, after closing marginally lower in the previous session.
U.S. gold futures GCcv1 for June delivery were unchanged at $1,314.10 per ounce.
The dollar index .DXY hovered near a four-month high on Tuesday, continuing to draw support from higher Treasury yields and upbeat prospects for the U.S. economy, leaving its major rivals such as the euro struggling. USD/
“While seeing some support from stronger oil prices and uncertainty over the U.S. position on Iran, gold continues to trade in-line with dollar flows, which are restricting any sustained top-side moves,” MKS PAMP Group trader Sam Laughlin said in a note.
A stronger dollar makes gold and other greenback-denominated commodities more expensive for holders of other currencies.
Oil prices retreated from 3-1/2-year highs on Tuesday as investors waited for an announcement by U.S. President Donald Trump on whether the United States will reimpose sanctions on Iran. O/R think the Iran deal is probably something that could turn things around. Oil might spike and gold could go with it,” said a Hong Kong-based trader.