Dollar down, gold gains on global risks; US stocks inch up

  • Dollar down, gold gains on global risks; US stocks inch up

Dollar down, gold gains on global risks; US stocks inch up

NEW YORK, April 17 Tensions over North Korea pressured the dollar against the yen and lifted gold prices on Monday, while USA stocks rose after three straight days of losses as investors shifted their focus to earnings.

Platinum rose 0.5 percent to $975.80, while palladium dropped 0.2 percent to $793.40. "We see the yen continuing to strengthen, and a strong yen and strong gold have gone hand in hand since November", Saxo Bank's head of commodity strategy Ole Hansen said.

That dwarfed any relief for market players after the U.S. Treasury department did not name China as a currency manipulator, avoiding an all-out confrontation on currencies between the world's two largest economies.

The Atlanta and New York Federal Reserve banks downgraded their outlook for US economic growth for the first quarter after disappointing data on retail sales and consumer prices in March.

Spot silver edged down 0.1 percent to $18.38 per ounce, after hitting over a five-month high of $18.649 in the prior session. United States gold futures were 0.9pc lower at $1,282. The 10-year U.S. Treasury yield was at 2.23 percent. He warned North Korea on Monday that recent American military strikes in Syria and Afghanistan showed President Donald Trump's resolve should not be questioned, but Pyongyang vowed to continue missile and nuclear tests.

Investors are also carefully monitoring statements made by U.S. Federal Reserve members in anticipation of the next possible rate hike. Saxo Bank's head of commodity strategy, Ole Hansen, told Reuters "expectations about the dollar are up for revision, the strong dollar story is fading, Trump is talking it down and we're seeing weakness creep into USA data, changing the perception of how much rates have to rise". It touched its highest since November 11 at $18.65 on Monday.

Gold gained 0.7 percent to hit a five-month high of $1,295.5 per ounce on continued concerns on tensions over North Korea.

President Tayyip Erdogan declared victory in a referendum on Sunday to grant him sweeping powers in the biggest overhaul of modern Turkish politics, but opponents said the vote was marred by irregularities and they would challenge its result.