Gold Rebounds to Near $4,070 as Weaker Dollar and Falling Oil Prices Provide Relief
Gold prices rebounded to near $4,070 an ounce on Monday as a weaker dollar and falling oil prices provided relief after concerns about Federal Reserve tightening had pressured bullion.
The spot price of gold gained 0.7% to $4,068.54 by 4:37 am GMT, while US futures rose 0.9% to $4,066.60.
According to market analysts, the recovery is not yet a durable bottom and the metal needs weakness in the dollar and Treasury yields before it can be confirmed as such.
The dollar weakened after authorities intervened to support the yen, making gold cheaper for buyers using foreign currencies.
Aakash Doshi, head of gold strategy at State Street Investment Management, said expectations for Fed tightening appeared overly aggressive and that gold's next $1,000 move is more likely to be higher, with a six-to-nine-month range of $4,750 to $5,500.