Gold gets chipped by dollar’s biggest climb in seven years

GOLD DIVED TO ITS SECOND CONSECUTIVE MONTHLY LOSS DESPITE GAINING one percent for the week to hold above the relatively bullish level of $1,900 an ounce level.

The yellow metal’s slump came after the dollar index rose 4.6 percent for April, its highest since January 2015. U.S. bond yields, which often run side-by-side with the dollar, also dented gold’s appeal as it rose almost 24 percent for April for its second monthly increase in a row after a near 29 percent jump in March.

Front-month gold futures on New York’s Comex gained 1.1 percent or $20.40 for the day at $1,911.70 per ounce. It, however, declined 1.9 percent for the month, even as it recorded 4.5 percent gain for the year.

Craig Erlam, senior analyst at OANDA, who wondered if gold could stabilise after the recent plunge, noted that, “It’s been an awful couple of weeks for the precious metal since coming close to EUHDNLQJ DERYH IRU WKH åUVW time in over a month.”

Erlam observed that the dollar rally has been relentless, adding that it has been a real drag on the yellow metal.

“Gold will continue to see safe haven and inflation hedge appeal so I don’t see the recent rate of decline continuing, even