🐂 Not all bull runs are created equal. November’s AI picks include 5 stocks up +20% eachUnlock Stocks

PRECIOUS-Gold bounces off 5-1/2-month low as dollar retreats

Published 21/11/2016, 10:14 pm
© Reuters.  PRECIOUS-Gold bounces off 5-1/2-month low as dollar retreats
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
GLD
-

* Dollar pulls back after hitting highest since Apr. 2003

* Biggest gold ETF saw holdings drop 19 T last week

* Lower prices tempt some physical buyers back to gold (Updates throughout, adds LONDON dateline)

By Jan Harvey

LONDON, Nov 21 (Reuters) - Gold rose on Monday, rebounding from 5-1/2 month lows as the dollar shed some of the hefty gains made the previous week on bets that U.S. president-elect Donald Trump's plans for fiscal stimulus would prove inflationary.

That drove Treasury yields higher, denting interest in non-yielding bullion while boosting the U.S. currency. As the dollar took a breather on Monday, gold clawed back some lost ground.

Lower prices are also tempting some consumers of physical gold back to the market, dealers said.

Spot gold XAU= was up 0.5 percent at $1,214.21 an ounce at 1036 GMT, while U.S. gold futures GCv1 for December delivery were up $5.50 an ounce at $1,214.20.

"At the moment we're seeing some consolidation after the big move," ABN Amro analyst Georgette Boele said. "You see the same in euro/dollar. It got close to its previous low, and it ran out of steam. We need some new drivers to push below that level."

"If we have another combination like we had over the last few weeks -- higher equities, higher bond yields, higher dollar -- (gold) will quickly go below $1,200."

The euro rose from an 11-month low against a broadly weaker dollar on Monday after former French president Nicolas Sarkozy was knocked out of the running for next year's presidential elections. FRX/

Gold has fallen more than $120 from its post-U.S. election peak on November 9, as U.S. Treasury yields posted their biggest two-week rise in more than five years and the dollar shot higher.

Investors' appetite for gold showed signs of slackening. Holdings of the world's biggest gold-backed exchange-traded fund, SPDR Gold Shares GLD , slid more than 19 tonnes last week, its biggest weekly outflow in four months. GOL/ETF

Speculators cut their net long position in COMEX gold for the first time in four weeks in the week to Nov. 15, and also reduced it in silver, U.S. Commodity Futures Trading Commission data showed on Friday. gold premiums in India, the second largest consumer of the precious metal, jumped to two-year highs last week as jewellers ramped up purchases on fears the government might curb imports after withdrawing higher-denomination notes from circulation. prices have induced some interest in the physical market," ANZ analyst Daniel Hynes said.

Among other precious metals, silver XAG= was up 0.5 percent at $16.67 an ounce, while platinum XPT= was 1.1 percent higher at $930.20, and palladium XPD= was up 0.5 percent at $728 an ounce.

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.