Gold Struggles Near 15-month High as U.S. Dollar Rebounds from Low

June Gold futures struggled to attract buyers as it neared a 15-month high on Tuesday, giving investors an excuse to book profits. A recovery in the U.S. Dollar also helped pressure the market.

At last report, June Gold futures were trading at $1289.30, down $6.50 or -0.50%. Gold had reached its highest level since January 22, 2015 at $1306.00 on Monday. Spot gold declined 0.31 percent to $1287.16 an ounce, after earlier hitting a session high of $1302.00.

July crude oil futures were trading sharply lower at $44.54, down $0.94 or -2.07%. Rising output from the Middle East and North Sea renewed concerns about a global supply glut.

Iraq said its oil shipments from southern fields averaged 3.364 million barrels per day (bpd) in April, up 3.286 million in March. Production from top exporter Saudi Arabia was 10.15 million bpd in April, but sources said it may return to near-records of 10.5 million bpd soon.

Daily supply of North Sea Brent crude will rise in June to its highest in four months, up 17 percent from May, according to monthly loading programs provided by trading sources.

U.S. production has slumped from a peak of around 9.6 million bpd in June 2015 to below 9 million bpd now, according to government data.

The USD/JPY fell to an 18-month low on Tuesday, extending gains on persistent doubts the Bank of Japan will intervene to stem a dramatic rise that has undermined attempts to reflate the world’s third-biggest economy. The USD/JPY is rebounding after reaching a low of 105.543 earlier in the session. The last report showed a reading of 106.275, down 0.124 or -0.12%.

Renewed anxiety about sluggish global growth stoked a sell-off in stock markets worldwide, pushing investors to the safety of low-yielding, liquid currencies like the Euro. The low-yielding EUR/USD rallied early in the session to 1.1616 before easing to 1.1519, down 0.0014 or -0.13%.

The GBP/USD posted a dramatic reversal to the downside after reaching an intraday high at 1.4769. The last price was 1.4555, down 0.0117 or -0.80%. The catalyst behind the selling pressure was a poll which showed British voters who favor leaving the European Union hold a razor-thin edge over those who want to stay.

U.S. stock indices traded more than 1 percent lower Tuesday as investors piled into safe haven assets such as the Japanese Yen and Euro amid concerns from weaker-than-expected Chinese manufacturing data. The Dow Jones Industrial Average held about 200 points lower in midday trade.

There were no major U.S. economic reports today. However, FOMC Member Loretta Mester is scheduled to speak today. She may shed some light on the global economic situation and its impact on Fed policy.