Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

PRECIOUS-Gold prices ease as improved risk appetite weighs

Published 2019-09-09, 04:22 a/m
© Reuters.  PRECIOUS-Gold prices ease as improved risk appetite weighs
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

* Spot gold to test support at $1,497/oz - technicals

* Speculators raise bullish COMEX gold, silver bets - CFTC (Adds comment, updates prices)

By Eileen Soreng

Sept 9 (Reuters) - Gold prices inched lower on Monday as equities rose, but policy easing expectations by major central banks gathered momentum, amid soft economic data, which kept prices steady over the psychological level of $1,500.

Spot gold XAU= eased 0.1% to $1,505.20 per ounce, as of 0739 GMT, having fallen nearly 1% in the previous session. U.S. gold futures GCv1 also dipped 0.1% to $1,514.1 an ounce.

"The renewed global risk appetite has spurred some weakness in safe-haven assets," said Phillip Futures analyst Benjamin Lu.

"We are seeing short-term weakness (in gold prices), but in the long term the trajectory is still bullish."

Global equity markets received a lift after China's central bank said on Friday it was reducing how much cash banks must hold in reserve, releasing liquidity to shore up an economy slowed by the Sino-U.S. trade conflict. MKTS/GLOB

Data on Sunday showed China's exports unexpectedly fell in August as shipments to the United States plummeted, pointing to further weakness in the world's second-biggest economy and underlining the need for more stimulus. sentiment was also supported by comments from Federal Reserve Chair Jerome Powell that the U.S. central bank would continue to act "as appropriate" to sustain the economic expansion. comments and a mixed U.S. employment report firmed market expectations that the Fed would cut interest rates at its meeting later this month.

Data from the Labor Department on Friday showed U.S. job growth slowed more than expected in August, but strong wage gains should support consumer spending and keep the economy expanding moderately. non-farm payrolls numbers underscores the economic fragility in the world's largest economy, Howie Lee, economist at OCBC Bank said in a note.

"With the ECB and Fed primed to further ease monetary conditions this month, it is unlikely gold will dip below $1,500/oz in the short-term."

Lower interest rates reduce the opportunity cost of holding non-yielding bullion.

Hedge funds and money managers hiked their bullish positions in COMEX gold and silver contracts in the week to Sept. 3, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday. gold is expected to test a support at $1,497 per ounce, a break below which could cause a further fall to $1,453, according to Reuters technical analyst Wang Tao. spot silver XAG= dipped 0.8% to $18.01 per ounce.

Spot platinum XPT= eased 0.1% to $948.87 an ounce, while palladium XPD= rose 0.4% to $1,537.66.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.