Gold steadies as dollar rally comes off the boil

Wednesday, 23 May 2018 00:00 - - {{hitsCtrl.values.hits}}

LONDON (Reuters) : Gold steadied on Tuesday from a 2018 low as the dollar fell from its five-month high, although risk appetite in the broader financial markets kept the metal’s gains in check.

The dollar lost momentum following a rally prompted by rising U.S. bond yields and the prospect of a resolution to U.S.-China trade tensions. A weaker dollar makes dollar-priced gold cheaper for non-U.S. investors.

Washington and Beijing both claimed victory on Monday as the world’s two largest economies stepped back from the brink of a trade war and agreed to hold further talks to boost U.S. exports to China.

Spot gold was flat at $1,291.48 per ounce by 1410 GMT. In the previous session, it slid to $1,281.76, its lowest since Dec. 27.

U.S. gold futures for June delivery were flat at $1,290.80 per ounce.