Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

PRECIOUS-Gold set for fourth weekly gain on softening dollar

Published 2019-01-11, 08:30 a/m
Updated 2019-01-11, 08:30 a/m
© Reuters.  PRECIOUS-Gold set for fourth weekly gain on softening dollar

© Reuters. PRECIOUS-Gold set for fourth weekly gain on softening dollar

* Gold up about 0.6 percent this week

* Palladium on course for 1.8 pct weekly gain

By Arijit Bose

BENGALURU, Jan 11 (Reuters) - Gold rose on Friday as the dollar slipped on expectations that brakes could soon be applied to U.S. interest rates, putting the non-yielding metal on track for a fourth straight weekly gain.

Spot gold XAU= rose 0.4 percent to $1,292.01 an ounce by 1320 GMT. U.S. gold futures GCv1 were up 0.4 percent at $1,292.90.

The dollar slipped against other major currencies .DXY , impaired by Fed Chairman Jerome Powell's comment that the central bank could be patient on rate policy. USD/

"Gold rose on a somewhat weaker dollar, but at the moment it seems to be trying to overcome the $1,300 hurdle," said Commerzbank (DE:CBKG) analyst Daniel Briesemann.

The precious metal was also supported by increasing market nervousness over U.S. President Donald Trump's unbending demand for a wall to be built on the border with Mexico. threatened on Thursday to use emergency powers to bypass Congress to pay for the proposed wall. more speculators jump on the bandwagon (because of the U.S. government shutdown), gold will pass the $1,300 level," Briesemann said.

Gold, which is used as a safe-haven investment during times of economic, political and financial uncertainty, is up about 0.6 percent for the week. MKTS/GLOB

"Volatile equity markets and a stalemate over the U.S. government shutdown should keep (gold) prices well supported. In fact, investors continue to pour money into the gold ETF market," ANZ analysts said in a note.

Holdings HLDSPDRGT=XAU in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , are near their highest since late July. GOL/ETF

"The $1,300 resistance level for gold is looking very vulnerable. Risk aversion has been supportive, but as we're seeing now, its primary driver is the dollar," said OANDA senior market analyst Craig Erlam.

"And the dollar softening as trade relations between the U.S. and China improve should continue to lift gold."

U.S. officials expect China's top trade negotiator to visit Washington this month after this week's talks with mid-level officials in Beijing. other precious metals, palladium XPD= firmed by 0.1 percent to $1,323.49 an ounce and was up about 1.8 percent for the week. Silver XAG= , meanwhile, was up 0.6 percent at $15.66 and platinum XPT= rose 0.2 percent to $821.30.

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.