Gold Gains Ground as Equities and Dollar Retreat

by Jan Harvey

LONDON, May 16 Gold rose 1 percent on Monday, recovering from its biggest weekly loss since mid-March, as stock markets eased after soft Chinese data, boosting interest in the metal as an alternative asset, and the dollar weakened against the euro.

Spot gold was up 1 percent at $1,286.01 an ounce at 1342 GMT, while U.S. gold futures for June delivery were up $15.20 at $1,287.90.

The metal ended last week down 1.2 percent after a sharp midweek slide, though it rebounded 0.8 percent on Friday.

The metal is being supported by “sluggish stock markets, the U.S. dollar not really doing anything worthwhile, (and) the negative interest rate environment,” MKS’s head of trading Afshin Nabavi said.

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