Gold failed to find support from the escalating geopolitical tensions in Ukraine as a stronger dollar offset the metal’s safe-haven appeal. Spot gold was steady at $1,287.70 an ounce, after posting a small gain last week. The dollar index was trading near a 13-month high, hurting bullion.
Higher equities have also diminished the appetite for gold. SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund and a gauge of investor demand, said its holdings fell 0.08 percent to 795 tonnes on Friday.
Hedge funds and money managers decreased their bullish futures and option bets in gold for a second consecutive week as a record rally in U.S. equities sapped demand for the safe-haven metal, data from the Commodity Futures Trading Commission showed on Friday.
This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.