Gold held steady on Tuesday as bets on a pause in U.S. interest rate hikes and hopes of a Sino-U.S. trade deal put pressure on the dollar, but an improved risk appetite capped gains for the safe-haven metal.
Goldman Sachs downgraded its 2019 crude oil price view, but forecast a recovery from present levels in the absence of a “large” global economic slowdown and improving fundamentals along with signs of major producers trimming their production.
Gold rose on Monday, helped by a weaker dollar on expectations that the U.S. Federal Reserve might apply brakes on its monetary tightening cycle in 2019, although an improved risk appetite limited gains for the safe haven metal.
Gold pierced the $1,300 level to extend a new year rally. Investors flocked to the metal with global equities in retreat, signs of a slowdown stacking up, and the oldest of havens showing its mettle as exchange-traded funds draw in increased flows.
Oil prices rose by more than 1 percent on Monday, lifted by optimism that talks could soon resolve the trade war between the United States and China, while supply cuts by major producers also supported the market.
The International Cotton Advisory Committee has predicted the average global cotton price for 2018-19 will be 86 cents per pound, lower than its earlier projection of 89 cents, on a likely decline in consumption.
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