Gold gains on weaker dollar, easing inflation concerns

Gold prices rose on Tuesday, supported by a weaker US dollar and easing energy costs after US President Donald Trump suggestedthat the war in the Middle East could end soon. Respite from a potential war-driven surge in inflation would likely reduce the chances of central banks raising interest rates, a positive for non-yielding gold. Spot gold rose 0.5% to $5,161.54 per ounce, as of 0429 GMT. US gold futures for April delivery rose 1.3% to $5,171.10. The dollar fell 0.3%, making greenback-priced bullion cheaper for holders of other currencies. Gold prices rose “due to the news flow from US President Trump himself, stating that there is a potential for de-escalation… So what we could see is that potential inflation expectation starts to tone down given this dramatic fall in oil price,” said Kelvin Wong, a senior market analyst at OANDA.