Breaking News
0

PRECIOUS-Gold pulls back from 5-week high as dollar edges higher

CommoditiesDec 05, 2018 12:31
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. PRECIOUS-Gold pulls back from 5-week high as dollar edges higher

(Adds comment, updates prices)

* Palladium comes off Tuesday's all-time high

* Platinum declines to lowest in 2-1/2 months

By Karthika Suresh Namboothiri

BENGALURU, Dec 5 (Reuters) - Gold prices dipped on Wednesday, retreating from a more than five-week top hit in the previous session, as the dollar crawled higher.

Spot gold XAU= was down 0.2 percent at $1,235.31 per ounce at 0648 GMT, after hitting its highest since Oct. 26 at $1,241.86 an ounce in the previous session. U.S. gold futures GCv1 were down 0.5 percent at $1,240.7 per ounce.

"Gold is mainly tracking the U.S. dollar," said Brian Lan, managing director at dealer GoldSilver Central in Singapore. "Today's move in gold prices is a correction because yesterday prices were up quite a bit."

The dollar index .DXY , which measures the greenback against a basket of six major currencies, edged up about 0.2 percent, even though the U.S. currency was under pressure as declining Treasury yields raised concerns over economic growth. USD/

The benchmark 10-year Treasury yield fell to its lowest point since mid-September. The spread between the 10-year yield over its two-year counterpart also shrank to the smallest since the start of the financial crisis in January 2008, signalling to some investors an approaching economic slowdown. US/

"Gold prices should have taken support from this but it has not. As inflation has come down, crude oil prices have come down, these positive and negative factors are holding gold at the same level," said Renisha Chainani, head of commodity and currency research at Monarch Networth Capital.

Concerns about weaker growth have stoked bets that the Federal Reserve will end its campaign to raise interest rates sooner than previously thought, analysts said.

U.S. Federal Reserve Chairman Jerome Powell said last Wednesday that U.S. interest rates were nearing neutral levels, which markets interpreted as signalling a slowdown in rate hikes.

Asian equities dipped in line with Wall Street as resurgent trade concerns stoked worries about global economic growth. MKTS/GLOB

U.S. President Donald Trump on Tuesday held out the possibility of an extension of the 90-day trade truce with China, but warned he would revert to tariffs if the two sides could not resolve their differences. you would expect a better outing from gold given the absolute beatdown in stocks, but this is a baby step for the precious metal," said Amit Kumar Gupta, portfolio management services head at Adroit Financial Services in New Delhi.

"Gold at this point will correct a little more. $1,242.5 is the level gold has to test before it goes up to the next level. The downside we are looking at is $1,230," GoldSilver Central's Lan said.

Meanwhile, palladium XPD= retreated 0.3 percent to $1,229.92 per ounce, trading in close proximity to the yellow metal and after notching a record high on Tuesday.

Spot silver XAG= fell 0.4 percent to $14.46 per ounce, while platinum XPT= was down 1 percent at $795.40 per ounce after hitting its lowest level since Sept. 17 at $787.5 earlier in the session.

PRECIOUS-Gold pulls back from 5-week high as dollar edges higher
 

Related Articles

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