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PRECIOUS-Gold dips on dollar strength, cenbank meetings in focus

Published 2020-09-09, 12:05 a/m
© Reuters.
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* Dollar hits near one-month high

* Tech rout roils Asian shares

* Interactive graphic tracking global spread of coronavirus: open https://tmsnrt.rs/3aIRuz7 in an external browser (Recasts, adds technicals, updates prices)

By Brijesh Patel

Sept 9 (Reuters) - Gold prices slipped on Wednesday as a stronger dollar offset support from a pullback in global equities, while investors awaited monetary policy strategies from central banks this week.

Spot gold XAU= was down 0.3% at $1,925.97 per ounce by 0616 GMT. U.S. gold futures GCcv1 fell 0.5% to $1,933.80.

"Traders in Asia will adopt a cautious tone, preferring to wait for New York to open and clearer evidence as to whether the USD rally and stock market sell-off will continue," said Jeffrey Halley, a senior market analyst at OANDA.

"However, a deeper correction below $1,900 cannot be ruled out if the dollar stays strong," he added.

Weighing on gold's appeal, the dollar index .DXY rose to a near one-month high against its rivals. USD/

But bullion found some support as Asian shares weakened, following a tech-led selloff on Wall Street on Tuesday that had forced investors to seek safe havens. MKTS/GLOB

Investors now await the outcome of the European Central Bank's policy meeting, due on Thursday. While no major policy moves are expected since it has acted aggressively to shore up the virus-hit economy, investors will watch out for its inflation forecasts. is used as a hedge against inflation and currency debasement.

The Bank of Canada's policy meeting is also on Wednesday, while the U.S. Federal Reserve's meeting is scheduled for next week.

On the technical front, spot gold is expected to retest a support at $1,906 per ounce, a break below which could cause a fall to $1,880, said Reuters technical analysts Wang Tao. TECH/C

Elsewhere, platinum XPT= was down 0.1% at $900.57 per ounce. On Tuesday, the World Platinum Investment Council changed its forecast for the market in 2020 from a surplus to a deficit. XAG= dipped 0.2% to $26.65 per ounce, while palladium XPD= rose 0.5% at $2,284.75.

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