Gold prices rise

BENGALURU. — Gold prices rose to a two-week high yesterday as the dollar dipped to multi-month lows amid fading prospects of further rate increases by the US Federal Reserve in 2017 and doubts whether President Donald Trump would be able to push through healthcare reforms.

Asian shares stepped back from more than twoyear highs yesterday, while the dollar extended losses as passage of a US healthcare bill grew doubtful and investors bet the Fed would be more cautious about raising interest rates.

“With the street repricing its US interest rate outlook following soft data and a dovish (Fed chairwoman Janet) Yellen, and with President Donald Trump’s reflationary reforms seemingly lost in the legislative Bermuda Triangle of Congress, a weaker US dollar should continue to support gold,” said Jeffrey Halley, a senior market analyst at Oanda.

Republican senators Jerry Moran and Mike Lee announced their opposition on Monday to a revised Republican healthcare bill, delivering a serious blow to the legislation.

Spot gold rose 0,3 percent to $1 237,05 per ounce at 3.28am GMT, after touching $1 238,27, the highest since July 3, earlier in the session. US gold futures for August delivery rose 0,3 per ounce to $1 236,90 per ounce.

“At this moment, gold is likely to be in the trading range of $1 200-1 250,” said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.

Prices of the metal were unlikely to significantly break above these levels since there were no other major drivers, including geopolitical factors, for gold as of now, he added. — Reuters.