US Dollar thwarting Gold Prices

London (April 17)  A resilient U.S. dollar is making it hard for gold to hang onto any gains, said Lukman Otunuga, research analyst at FXTM.

“Broadly, global risk sentiment has been supported by China showing signs of stabilizing and hopes that the U.S.-China trade saga will conclude with a breakthrough deal,” Otunuga added.

 However, with the ECB [European Central Bank] and the IMF [International Monetary Fund] warning that risks remain tilted to the downside, markets do not yet have the all-clear for charging into a risk-on side.

 Focusing on the medium to longer term outlook, gold remains protected by concerns over slowing global growth, Brexit, geopolitical risks and a dovish Federal Reserve. As long as these themes remain present, the metal still has ample upside potential.

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