Gold Rallies as Dollar Softens and Turkish Lira Recovers
Investing.com - Gold prices recovered from an 18-month low on Tuesday, as the U.S. dollar softened, .
Comex gold futures for August delivery rose 0.47% to $1,204.50 a troy ounce as of 10:37 AM ET (14:37 GMT).
Gold fell to an 18-month low on Monday, after economic turmoil in Turkey caused the Turkish lira to plunge to an all-time low of 7.1289. The lira recovered on Tuesday, breaking a 5-day losing streak after the country's central bank pledged to provide liquidity in response to a meltdown that led to a global sell-off in equities.
The struggling currency sank on Monday amid growing concerns over a deepening diplomatic rift with the United States over Ankara's detention of Andrew Brunson, an American pastor detained in 2016.
Turkish Finance Minister Berat Albayrak is expected to have a conference call with investors from the U.S., Europe and the Middle East on Thursday, his first since assuming the post almost two months ago.
The precious metal was also bolstered by a softer greenback. Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar.
The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, inched up 0.09% to 96.25.
Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.
Other metals were mostly up on the Comex, with silver futures rising 0.55% to $15.065 a troy ounce. Among other precious metals, platinum futures rose 0.60% to $804.30 while palladium futures increased 0.61% to $886.40 an ounce. Copperfutures slumped 1.43% to $2.693 a pound.