Breaking News
0

PRECIOUS-Gold gains as stocks slip; en route to 4th weekly gain

CommoditiesJan 12, 2019 00:46
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. PRECIOUS-Gold gains as stocks slip; en route to 4th weekly gain

(Updates prices)

* U.S. consumer prices post first drop in 9 months

* Gold up about 0.3 percent so far this week

* Palladium set for third straight weekly gain

By Swati Verma

BENGALURU, Jan 11 (Reuters) - Gold edged higher on Friday and was on track for its fourth successive weekly gain, as U.S. stocks slipped and expectations rose that the U.S. Federal Reserve might halt its monetary policy tightening cycle.

Spot gold XAU= was up 0.2 percent at $1,288.47 an ounce by 1:52 p.m. EST (1852 GMT). U.S. gold futures GCv1 settled 0.2 percent higher at $1,289.5.

"With equities down slightly heading into the weekend, there is some flight to safety in gold," said Bob Haberkorn, senior market strategist at RJO Futures.

An index of world stock markets eased on Friday after a five-day winning streak. MKTS/GLOB

"The equities are looking a little heavy up at these levels and yesterday's speech by Fed Chairman Powell felt like Fed might adopt a dovish stance on rates moving forward, which is lending a lot of support to gold," Haberkorn added.

Fed Chairman Jerome Powell said on Thursday the U.S. central bank could be patient on rate policy. on Friday showed U.S. consumer prices fell for the first time in nine months in December, which likely supports recent remarks by several policymakers, including Powell, for caution about raising interest rates this year. tends to gain on expectations of lower interest rates, as they reduce the opportunity cost of holding non-yielding bullion.

"Recent inflation data from around the globe points to a tamer outlook on rising prices in the coming months," Jim Wyckoff, senior analyst at Kitco Metals, wrote in a note.

"That should allow world central banks to be less hawkish on their monetary policies, which would be a bullish element for the precious metals markets."

Gold is up about 0.3 percent for the week, mainly supported by a weaker dollar, which slipped to about three-month lows on Thursday against the backdrop of dovish views from the Fed and a de-escalation in the U.S.-China trade dispute.

U.S. officials expect China's top trade negotiator to visit Washington this month after this week's talks with mid-level officials in Beijing. $1,300 resistance level for gold is looking very vulnerable. Risk aversion has been supportive, but as we're seeing now, its primary driver is the dollar," said OANDA senior market analyst Craig Erlam.

Among other precious metals, palladium XPD= was down 0.2 percent at $1,319.50 an ounce, and was up about 1.4 percent for the week.

Platinum XPT= slipped 0.7 percent to $814.10 and ounce and was down over 1 percent for the week.

Silver XAG= gained 0.3 percent to $15.61 an ounce. But it was on track to record a weekly decline after rising for three weeks.

PRECIOUS-Gold gains as stocks slip; en route to 4th weekly gain
 

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email