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PRECIOUS-Gold rangebound as risk appetite caps gains, set for third weekly drop

Published 2019-09-13, 03:58 a/m
© Reuters.  PRECIOUS-Gold rangebound as risk appetite caps gains, set for third weekly drop
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* Palladium retreats from record peak, set for 6th weekly gain

* Platinum on track to for fourth consecutive weekly gain

* Investors now await Fed, BOJ policy meetings (Adds comment, updates prices)

By Karthika Suresh Namboothiri

Sept 13 (Reuters) - Gold prices were rangebound on Friday as monetary easing uncertainties by major central banks supported demand while trade talk optimism lifted other assets, curbing gold's gains.

Spot gold XAU= rose 0.4% to $1,503.93 per ounce as of 0725 GMT. Prices are down about 0.3% so far this week in what could be their third straight weekly drop.

U.S. gold futures GCcv1 rose 0.3% to $1,511.40 per ounce.

"De-escalation of the tensions between the world's two largest economies (the United States and China) have led investors to take out money from the safe haven asset gold and move towards risk assets," said Sugandha Sachdeva, vice-president, metals, energy and currency research, Religare Broking Ltd.

"The next major wave of move in gold prices will be governed by the outcome of upcoming Fed meet... prices are likely to gyrate between $1,480-$1,550 per ounce in the immediate short term."

U.S. President Donald Trump said on Thursday he preferred a comprehensive trade deal with China but did not rule out the possibility of an interim pact, even as he said an "easy" agreement would not be possible. two sides have been making conciliatory gestures ahead of scheduled trade talks next month, lowering the temperature between them and cheering investors.

Asian equities rose as hints of progress in their trade talks and aggressive stimulus from the European Central Bank helped buoy risk sentiment. MKTS/GLOB

ECB chief Mario Draghi pledged indefinite stimulus on Thursday to revive an ailing euro zone economy. bigger-than-expected stimulus will increase pressure on the U.S. Federal Reserve and the Bank of Japan to ease policy next week to support a world economy increasingly characterised by low growth and protectionist threats to free trade.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.

Reuters technical analyst Wang Tao said spot gold is biased to break a support at $1,480 per ounce and fall to the next support at $1,453. XPD= fell 0.6% to $1,612.56 per ounce, after hitting an all-time high of $1,621.55 on Thursday as possible labour issues in South African mines stoked supply concerns. was on track for a sixth straight weekly gain, its longest winning streak since 2016.

Silver XAG= rose 0.3% to $18.15 per ounce, while platinum XPT= inched 0.4% higher to $954.78. Platinum was set to gain for a fourth week.

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