👀 Ones to watch: The MOST undervalued shares to buy right nowSee Undervalued Shares

PRECIOUS-Gold gains, focus shifts to central bank policy meetings

Published 11/09/2019, 11:03 pm
© Reuters.  PRECIOUS-Gold gains, focus shifts to central bank policy meetings
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-
DXY
-

* ECB meeting Thursday, Fed next week

* Fundamental backdrop still broadly gold supportive -analyst

* Gold set to snap four-day losing streak

* Palladium hits two-month high (Updates prices)

By Brijesh Patel

Sept 11 (Reuters) - Gold rose on Wednesday, supported by lingering concerns over the global economy and U.S.-China trade tensions, but still held close to a four-week low touched last session amid a broader uptick in risk-sentiment ahead of major central bank meetings.

Spot gold XAU= was up 0.5% at $1,492.50 per ounce as of 1246 GMT. Prices fell to their lowest since Aug. 13 at $1,483.90 in the previous session.

U.S. gold futures GCv1 edged 0.1% higher to $1,500.50 an ounce.

"Prices are up very marginally, gold is still under pressure. We are at a month low around the $1,490 level because of improvement in risk appetite," Capital Economics analyst Ross Strachan said.

"The fact that we are at the bottom end of the range over the past month or so is attracting some interest, but we are also seeing partial recovery in bond yields in recent days, which is a bearish factor for gold in the short term," Ross added.

Bond yields climbed and world stocks rose for a sixth straight day, ahead of monetary policy decisions by the European Central Bank on Thursday, when the bank is widely expected to cut interest rates. MKTS/GLOB US/

The ECB decision is likely to set the tone for upcoming rate-setting decisions by the U.S. Federal Reserve and the Bank of Japan next week.

"The overall fundamental backdrop is probably still broadly gold-supportive considering the main sources of risk aversion remain unresolved," said Ilya Spivak, senior currency strategist at DailyFx.

"Both Brexit and the U.S.-China trade war are ongoing concerns, as is the broader slowdown in global growth. That probably encourages central banks to remain dovish, weighing on yields and boosting gold."

Lower interest rates decrease the opportunity cost of holding non-yielding bullion and weigh on the dollar, making gold cheaper for investors holding other currencies.

Meanwhile, the dollar .DXY was up 0.2% on Wednesday against a basket of major currencies. USD/

On the trade front, a senior White House adviser on Tuesday played down expectations for the next rounds of U.S.-China trade talks, urging investors, businesses and the public to be patient about resolving the protracted dispute. gold is still targeting $1,453, as it has breached a support at $1,497 per ounce, according to Reuters technical analyst Wang Tao. other precious metals, silver XAG= gained 0.6% to $18.11 per ounce, having hit a two-week low of $17.75 in the previous session.

Palladium XPD= climbed 1.2% to $1,579.89 an ounce, after hitting its highest since July 11 at $1,585. Platinum XPT= rose 1.1% to $940.50.

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.