✂ Fed’s first rate cut since 2020: Use our free Stock Screener to find new opportunities fastExplore for FREE

PRECIOUS-Gold rebounds after sinking to near 6-month low

Published 15/11/2016, 05:41 pm
PRECIOUS-Gold rebounds after sinking to near 6-month low
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* Spot gold may test resistance at $1,235/oz -technicals

* Dollar index near its 2015 peak

* Platinum off 8-1/2 month lows (Adds comment, updates prices)

By Apeksha Nair

Nov 15 (Reuters) - Gold prices edged higher on Tuesday as investors snapped up bars and coins in a wave of physical buying after the metal dropped to its lowest level in nearly six months in the previous session.

Spot gold XAU= was up 0.4 percent at $1,224.46 an ounce at 0554 GMT. The metal had slipped to its lowest since June 3 at $1,211.08 an ounce on Monday.

U.S. gold futures GCcv1 climbed 0.2 percent to $1,224.30.

Demand from China buoyed prices during Asian trade, said MKS PAMP Group trader Sam Laughlin.

"Support for the metal sits broadly around $1,210, while below this, the late May low around $1,200 should see strong (buying) interest."

The metal has fallen nearly 9 percent from a Nov. 9 high of $1,337.40 per ounce after Donald Trump's election as U.S. president, hurt by a stronger U.S. dollar and surging Treasury yields as investors bet fiscal and trade policies under his administration will stoke inflation.

The dollar index .DXY slipped 0.17 percent at 99.938, but remained well within reach of its December 2015 peak of 100.51. USD/

"It seems like Trump's increased spending will increase inflation expectations, on the back of which the U.S. dollar has risen strongly" said NAB analyst Vyanne Lai.

"(Market) sentiment is being compounded by the very high probability of the U.S. Fed raising interest rates in December."

Dallas Fed President Robert Kaplan on Monday suggested the U.S. central bank is on track to raise rates soon. is highly sensitive to rising rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar, in which it is priced.

Spot gold XAU= may test resistance at $1,235 per ounce, as it has found a support zone of $1,204-$1,210, according to Reuters technical analyst Wang Tao. other precious metals, silver XAG= was up 0.3 percent at $16.93 per ounce. The metal touched its lowest since June 8 at $16.61 an ounce the session before.

Platinum XPT= rose 1.2 percent to $941.80 an ounce, shrugging off over 8-month lows of $917.50 touched in the last session.

Palladium XPD= was down 1 percent at $691.00 an ounce after earlier hitting its highest since Oct. 4 at $702.50.

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.