Gold broadly supported, weakness in dollar helps

July 15,2020

COMEX Gold futures edged up amid rising US equities last night. The metal has seen good buying as lows near $1800 per ounce provide good support to the commodity. Traders also focused on the latest reading in US consumer price inflation which rose in June for the first time in four months largely because of higher gasoline and food prices. The consumer price index jumped 0.6% last month to match the biggest increase since 2012, the government said Tuesday.

The US-China tensions seem to be resurfacing. The Donald Trump administration rejected China's claims in the South China Sea, while China announced it was imposing sanctions on Lockheed Martin Corp after the US approved a deal for the supply of missile parts to Taiwan.

Weakness in the US dollar index, which fell near one month low of 96 mark yet again, also provided good support for gold. COMEX Gold currently trades at $1811 per ounce, down 0.10% on the day.

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