Gold prices inched higher early on Monday as the US dollar hovered around three-year lows, trading not far off more than 17-month highs hit last week.
Gold prices inched higher early on Monday as the US dollar hovered around three-year lows, trading not far off more than 17-month highs hit last week.
FUNDAMENTALS
Spot gold rose 0.1 percent to USD 1,350.99 per ounce at 01:01 GMT. It rose about 1.4 percent last week.
US gold futures for February delivery fell 0.2 percent to USD 1,349.50 per ounce.
The dollar wobbled near three-year lows against a basket of major currencies on Monday, struggling to pull ahead from six straight weeks of losses amid its evaporating yield advantage and doubts about Washington's commitment to a strong currency.
Asian shares looked to extend their recent bull run amid upbeat corporate earnings and strong global economic growth, while more rumblings from the White House about "unfair" trade practices kept the US dollar on the defensive.
US economic growth unexpectedly slowed in the fourth quarter as the strongest pace of consumer spending in three years resulted in a surge in imports.
Attempts to target exchange rates risk setting off a currency war, a top European Central Bank executive argued on Friday, just days after US officials made their case for a weaker dollar to boost trade.
The Eurozone's economy could prove to be a shining star again this year, but persistently tepid inflation will probably keep the European Central Bank from following its peers and tightening monetary policy anytime soon.
US Trade Representative, Robert Lighthizer, is hopeful about talks to renegotiate the North American Free Trade Agreement but realizes a great deal of work remains, Republican U.S. Congressman, Dave Reichert said on Sunday after a briefing.
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