Gold edges near two-week high as dollar slips

Gold prices climbed on Tuesday for the fifth session in a row, about to hit two-week highs as the dollar declines against major rivals.

Gold prices rose 0.4% to $1,860 an ounce, after rising 0.4% yesterday, the fourth profit in a row, marking two-week highs at $1,865.

The Dollar

The dollar index fell 0.35% on Tuesday for another session, marking month lows at 101.74 against major rivals.

Losses in dollar underpins gold prices, with risk appetite improving worldwide and hurting dollar demand.

Risk appetite improved as China loosens up restrictions as Covid 19 infections decline, while investors have completely priced in future US rate hikes with the dollar.

Safe Havens 

Global markets continue their recovery, led by Wall Street, as risk appetite improves markedly amid hopes for recovery in China.

SPDR 

Gold holdings at the SPDR Gold Trust rose 4.64 tones yesterday for the third day to a total of 1,068 tones, a May 10 high.