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25 April

By Ahmed Mamdouh

Category: Fundamental Comment

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Gold slides on stronger dollar, easing geopolitical tensions

Gold prices fell near a three-week low on Wednesday as the dollar’s advance and easing geopolitical concerns lowered the metal’s shine.

The precious metal recorded its lowest level today at $1323.22 an ounce after opening the session at $1329.84.

Gold was largely hit by the advance in the U.S. dollar, which leaped to a three-month high, as U.S. 10-year Treasury yield edged up 0.032 to a record higher of 3.015 percent.

The dollar index set a new peak at 90.85, the highest level since January 12, set for its sixth daily gain out of seven sessions.

On the political front, the geopolitical tensions eased as North Korean leader Kim Jong Un is due to hold a summit with South Korean President Moon Jae-In on Friday, while he may meet President Trump in early June.

Trump said on Tuesday the United States would likely reach a trade agreement with China where officials from both sides would meet to sit down for negotiations.

However, the losses in gold were limited as shares plunged on warnings from bellwether U.S. companies of higher costs raised concerns that corporate earnings growth may peak soon.

Crude oil inched down to $67.70 a barrel after falling around 1.8 percent on Tuesday, ahead of a U.S. government report tracking weekly build of crude inventories due later in the day.

Ahmed Mamdouh

Ahmed Mamdouh is the head of the English Fundamental Analysis at D1stp.com, with 9 years of experience in the financial markets. Mamdouh holds a Master’s Degree in Economics from The American University in Cairo and a Bachelor Degree in Economics from The Faculty of Economics and Political Science, Cairo University.