Gold prices steady

BENGALURU. Gold prices held steady near seven-week highs yesterday, after registering their biggest monthly gain in five in July, supported by a slump in the US dollar and political uncertainty.

Spot gold was nearly flat at $1 268,90 per ounce at 0628 GMT. It rose 2,2 percent last month, its biggest monthly gain since February. US gold futures for August delivery rose 0,1 percent to $1 268,20 per ounce.

“A weaker US dollar continues to help precious metals to shine. To this, we can add US/Russia relations, North Korea, Venezuela and the revolving door at the White House to the mix, all of which will also be supportive of gold as a safe haven,” said Jeffrey Halley, a senior market analyst at OANDA.

The dollar inched up but still hovered near a 2-1/2 year low versus the euro yesterday. Its outlook remained clouded by US political turmoil and doubts about whether there will be another Federal Reserve rate hike this year. Tensions simmered in the US as Russia retaliated to new sanctions and as North Korea continued to pose a threat to the country after it said on Saturday it had conducted another successful test of an intercontinental ballistic missile.

Gold is often used as an alternative investment during times of political and financial uncertainty.

Investors are also looking ahead to the US nonfarm payrolls data later this week and how that will affect the dollar, according to Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong. Reuters.