The dollar fell about 0.5% as U.S. Treasury yields tumbled and traders scaled back expectations on the number of hikes the Fed would implement amid weakening economic data and market volatility.
“The weaker dollar is keeping gold positive at the moment. If you look at the other markets as well, there is a kind of risk-off situation going on,” said Phil Streible, senior commodities strategist at RJO Futures in Chicago.
Global stock markets slumped for a third straight session on Thursday as the arrest in Canada of a top executive of China tech giant Huawei for extradition to the United States raised fears of a flare-up in trade tensions. U.S. stocks tumbled 3%.
Spot palladium slid 4.28 percent to $1,190.30 per ounce after rising to an all-time high of $1,263.56 in the previous session.
“It’s just profit-taking. Lots of money has moved in there so investors are checking out and taking some profits,” said Rob Lutts, chief investment officer at Cabot Wealth Management.
