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PRECIOUS-Gold rises to near 6-year high on dollar weakness, U.S.-Iran tensions

Published 06/25/2019, 09:18 AM
Updated 06/25/2019, 09:20 AM
PRECIOUS-Gold rises to near 6-year high on dollar weakness, U.S.-Iran tensions
XAU/USD
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GC
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GLD
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DXY
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June 25 (Reuters) - Gold prices rose to their highest level
in nearly six-years on Tuesday as the dollar sat near
multi-month lows and the announcement of fresh U.S. sanctions on
Iran boosted interest in the safe-haven metal.

FUNDAMENTALS
* Spot gold XAU= was up 0.4% at $1,424.35 per ounce as of
0100 GMT, after hitting its highest level since August 28, 2013
at $1,428.54.
* U.S. gold futures GCv1 rose 0.8% to $1,429.40 per ounce.
* U.S. President Donald Trump targeted Iranian Supreme
Leader Ayatollah Ali Khamenei and other top Iranian officials
with sanctions on Monday, taking a dramatic, unprecedented step
to increase pressure on Iran after Tehran's downing of an
unmanned American drone. * The dollar .DXY dropped to a three-month low against a
basket of currencies on bets the U.S. Federal Reserve may lower
interest rates more than once this year. {USD/]
* U.S. Treasury yields fell on Monday, holding just above
almost three-year lows, ahead of trade talks between the U.S.
and China later this week.
* Trump again criticized the Federal Reserve on Monday for
not cutting interest rates, keeping up his pressure on the
central bank to change its policies. * Investors are focused on whether President Trump and
Chinese President Xi Jinping can de-escalate the trade war
between the two countries when they meet at the G20 summit in
Japan.
* Trump is slated to meet one-on-one with at least eight
world leaders on the sidelines of the G20 summit in Osaka,
Japan, later this week, a senior U.S. administration official
said on Monday. * Asian stocks were left adrift on Tuesday as expectations
of more dovish talk from the Federal Reserve pushed down
Treasury yields and the dollar. MKTS/GLOB
* Holdings of SPDR Gold Trust GLD , the world's largest
gold-backed exchange-traded fund, rose 0.37% to 801.96 tonnes on
Monday from 799.03 tonnes on Friday.

DATA AHEAD (GMT)

* 1400 US Consumer Confidence June
* 1400 US New Home Sales-Units May

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