Breaking News
0

PRECIOUS-Firm dollar weighs on gold amid global growth risks

CommoditiesDec 17, 2018 03:36
Saved. See Saved Items.
This article has already been saved in your Saved Items
 
© Reuters. PRECIOUS-Firm dollar weighs on gold amid global growth risks

* Speculators switch to net long position in Comex gold - CFTC

* Spot gold biased to fall to $1,224-$1,228 range - Technicals

* Fed meeting on Dec. 18-19 awaited for monetary policy trajectory

By Karthika Suresh Namboothiri

BENGALURU, Dec 17 (Reuters) - Gold prices inched lower on Monday as the dollar held firm below a 19-month peak on safe-haven demand amid concerns of a global economic slowdown, and as investors awaited cues on U.S. interest rate hikes from a Federal Reserve meeting this week.

Spot gold XAU= was unchanged at $1,238.12 per ounce at 0820 GMT. U.S. gold futures GCv1 rose 0.1 percent at $1,242.1 per ounce.

"Gold's move today is purely dollar-driven," said Kunal Shah, head of research, Nirmal Bang Commodities in Mumbai, India.

"Ahead of the FOMC (Federal Open Market Committee) meeting, we are going to see some downward movement... But the fact remains that the underlying strength in gold is likely to continue."

Markets will closely watch the future trajectory of U.S. monetary policy at the Federal Reserve's Dec. 18-19 meeting where the board is set to raise interest rates by 25 basis points.

"Markets will rally on the back of dollar weakness after the central bank signals a more dovish stance, but the advance will fall back quickly as global growth concerns reassert themselves," INTL FCStone analyst Edward Meir said in a note.

Prospects of higher U.S. interest rates are negative for dollar-priced gold as they raise the opportunity cost of holding the bullion.

The dollar index .DXY , which measures the greenback against other major currencies, was just below the 19-month high of 97.71 hit on Friday. USD/

Weaker-than-expected economic data from China and Europe and fears of a possible U.S. government shutdown enhanced appeal for the U.S. currency, which has played the role of a safe-haven asset in recent times. MKTS/GLOB

Spot gold is biased to break a support at $1,232 per ounce, and fall to a lower support zone of $1,224-$1,228, according to Reuters technical analyst Wang Tao. hedge funds and money managers switched to net long position in Comex gold in the week ended Dec. 11, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. CFTC/

This was the first time gold speculators held a net long position since July, and the strongest since June.

"Uncertainties of the trade war are still weighing on the market," said Dick Poon, general manager, Heraeus Metals Hong Kong Ltd.

"It is getting close to Christmas time, so it is getting super quiet in the market. Investors reduce their inventories as much as possible before the year ends."

Among other precious metals, spot palladium XPD= rose 0.9 percent to $1,248.44 per ounce.

Silver XAG= climbed 0.2 percent to $14.59 per ounce, while platinum XPT= declined 1 percent to $779.50 per ounce.

PRECIOUS-Firm dollar weighs on gold amid global growth risks
 

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