Gold Steadies as Firm Dollar Offsets Safe-Haven Demand
Gold steadied on Monday as a stronger U.S. dollar countered safe-haven demand amid trade war concerns, while investors looked to inflation data this week for clues on the Federal Reserve's next interest rate decision. Spot gold was at $2,913.09 an ounce at 0946 GMT, while U.S. gold futures firmed 0.2% to $2,920.10. The dollar index held above last week's four-month low, making gold more expensive for holders of other currencies.
- A stronger dollar could be a harbinger of economic growth, as increased liquidity and consumer spending often accompany rising interest rates.
- What will happen if inflation does indeed rise, as market expectations suggest, and the Fed hikes rates further to combat it?