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 steadies as China's yuan holds gains vs dollar

Published 2018-08-09, 02:12 p/m
Updated 2018-08-09, 02:12 p/m
© Reuters. PRECIOUS-Gold steadies as China's yuan holds gains vs dollar

© Reuters. PRECIOUS-Gold steadies as China's yuan holds gains vs dollar

* Gains in dollar index limit upside for gold

* Gold seen in holding pattern until more data emerges (Updates prices, headline; adds comment, byline, CHICAGO dateline previous dateline LONDON)

By Renita D. Young and Maytaal Angel

CHICAGO/LONDON, Aug 9 (Reuters) - Gold was near flat on Thursday after two straight sessions of gains as a stronger U.S. dollar index weighed on upside momentum, though the precious metal took some comfort from a steadier Chinese currency.

Gold has been highly correlated with the yuan in recent weeks, with the Chinese currency acting as a proxy for concerns about U.S.-China trade tensions.

The yuan steadied against the dollar CNY=CFXS as greenback bulls remained wary of potential policy moves to stabilize the Chinese currency. .SS

The dollar rose against a basket of major currencies as geopolitical tensions faded, though traders said the greenback needed fresh impetus or an escalation in trade tensions to move higher. FRX/

A strong dollar makes dollar-priced gold costlier for non-U.S investors.

"Right now, gold is in a holding pattern until you get a little bit more of data," said Josh Graves, senior commodities strategist at RJO Futures.

He noted U.S. jobless claims came in lower than expected in the latest week, signifying a stronger economy and little necessity for safe-haven bids, like non-yielding gold. Consumer Price Index figures, which gauge inflation on consumer expenses, are expected early on Friday.

Spot gold XAU= was flat at $1,213.05 per ounce by 1:35 p.m. EDT (1735 GMT). U.S. gold futures GCcv1 for December delivery settled down $1.10, or 0.1 percent, at $1,219.90 per ounce.

"We still think (gold) will move higher in the second half because the dollar will weaken a bit, the Chinese government is trying to stop the yuan (from) weakening, and we'll have more concerns over trade," said Bank of America-Merrill Lynch analyst Michael Widmer.

China said late on Wednesday it would slap retaliatory tariffs of 25 percent on $16 billion worth of U.S. imports. said it would impose fresh sanctions on Russia after it determined Moscow used a nerve agent against a former Russian agent and his daughter in Britain. a traditional safe haven, has largely failed to benefit from rising geopolitical tensions this year, as investors have chosen the safety of the dollar over the precious metal.

The Federal Reserve has raised U.S. interest rates twice this year and has targeted two more hikes. Higher U.S. rates tend to boost the dollar and Treasury yields, adding pressure on greenback-denominated, non-yielding bullion.

Silver XAG= rose 0.4 percent to $15.45 an ounce, while platinum XPT= was unchanged at $826.50. Both earlier hit six-day highs at $15.51 and $839.90, respectively.

Palladium XPD= increased 0.7 percent to $906 per ounce, after hitting a more than two-week low in the previous session.

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.