🔴 Exclusive webinar: The Secrets of ProPicks AI Success Revealed + November’s List FREEWatch Now

PRECIOUS-Gold rises from 10-mth low but heads for 4th straight weekly drop

Published 02/12/2016, 05:43 pm
© Reuters. PRECIOUS-Gold rises from 10-mth low but heads for 4th straight weekly drop
XAU/USD
-
XAG/USD
-
DX
-
GC
-
SI
-
PA
-
PL
-
GLD
-
DXY
-

* Spot gold may bounce into range of $1,184-$1,194/oz- technicals

* Spot gold down 0.8 pct this week

* SPDR gold holdings down 1.54 pct on Thursday

* Palladium off 18-month highs touched Thursday (Adds comment; updates prices)

By Apeksha Nair

Dec 2 (Reuters) - Gold recovered from its lowest since early February on Friday as the dollar drifted lower ahead of U.S. jobs data, but is still on track for a fourth consecutive weekly decline.

Spot gold XAU= was up 0.2 percent at $1,173.59 an ounce by 0612 GMT. The metal fell to its lowest since Feb. 5 at $1,160.38 in the previous session.

For the week, gold was trading down 0.8 percent.

U.S. gold futures GCcv1 gained 0.5 percent at $1,175.30 per ounce.

"These movements in gold can be tied to the dollar," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

"There is a bit of buying in the physical side, but that has not been really aggressive."

The dollar index .DXY , which measures the greenback against a basket of major currencies, fell about 0.3 percent on Friday to 100.770 as investors remained wary ahead of U.S. payrolls data due later in the day. USD/

"Most market participants are awaiting the crucial non-farm payrolls (NFP) data due today. A positive outcome could mean the Federal Reserve can raise interest rates in the next meet," said Hareesh V, Research Head at Geofin Comtrade Ltd.

The dollar has scaled back from near 14-year highs of 102.05 hit on Nov. 24 on the back of a surge in U.S. Treasury yields triggered by expectations of higher fiscal impulse and faster pace of monetary tightening under president-elect Donald Trump.

Several Fed policymakers have since expressed confidence in the U.S. economy and signalled a possible near-term interest rate hike.

Gold is highly sensitive to rising interest rates, as these lift the opportunity cost of holding non-yielding bullion, while boosting the dollar.

"People are rushing to the stock market rather than the gold markets. That is evident in the liquidation we are seeing in the exchange traded funds (ETFs)," Leung of Lee Cheong Gold Dealers added.

Holdings of the largest gold-backed exchange-traded fund, SPDR Gold Trust GLD , fell 1.54 percent to 870.22 tonnes on Thursday. Holdings have fallen over 6 percent last month. GOL/ETF

Spot gold XAU= may bounce moderately into a range of $1,184 to $1,194 per ounce, according to Reuters technical analyst Wang Tao. XAG= was mostly unchanged at $16.52 an ounce.

Platinum XPT= slid 0.1 percent at $909.50 but was on track to rise for the first time in 4 weeks.

Palladium XPD= rose 0.3 percent at $752.65 an ounce after scaling its highest level since June 2015 at $774.60 in the previous session. It was set to rise for a fifth straight week.

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.