Gold fell as risk appetite improved and the dollar recovered

8 Jan 2019 11:11 AM

Gold prices fell on Tuesday as investors' risk appetite improved on the back of a surge in expectations that US reach a deal with China. Prices fell 0.5% to $1282.70 an ounce, while gold futures in the US fell 0.5% to $128.50 per ounce.

Global markets have been suffering from uncertainty arising from the trade war and the US interest rate hike, with some suggesting that the US Federal Reserve may cut interest rates further in the coming period as challenges continue to face the economy. Which caused the dollar to fall to a two-and-a-half-year low in green-denominated commodities in high-flying gold especially before its gains narrowed somewhat as the situation improved.

Gold prices have risen nearly 11% since hitting a one-and-a-half year low in mid-August due to volatile equity markets and a slightly weaker dollar. The yellow metal hit its highest level since June 2018 at $1298.42 on Friday.

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