Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

PRECIOUS-Gold climbs quietly as investors wary ahead of French vote

Published 22/04/2017, 04:46 am
© Reuters.  PRECIOUS-Gold climbs quietly as investors wary ahead of French vote
XAU/USD
-
XAG/USD
-
GC
-
SI
-
PA
-
PL
-

* Gold on track for steady weekly performance after 5 higher

* Silver falls for 5th session (Updates prices; adds comment, second byline, NEW YORK to dateline)

By Marcy Nicholson and Eric Onstad

NEW YORK/LONDON, April 21 (Reuters) - Gold prices rose slightly on Friday as investors awaited the first-round of voting in the presidential French election at the weekend and possible announcements about tax changes in the United States.

Spot gold XAU= was up 0.3 percent at $1,284.62 an ounce by 2:30 p.m. EDT (1830 GMT), on track to close the week little changed after five straight weeks higher.

U.S. gold futures GCcv1 settled up 0.4 percent at $1,289.10.

"The big news over the weekend will be the French election and the market will be to an extent on hold ahead of that," said Mitsubishi commodities analyst Jonathan Butler.

There was potential for safe-haven buying of gold after France said security forces were fully mobilized for the weekend vote after an Islamist militant killed a policeman Thursday night. the near term, if the geopolitical tensions intensify, there is a chance that gold prices will reach $1,300 or more," OCBC analyst Barnabas Gan said.

A move in gold above $1,290/91 would be significant as it would break above a downtrend that has been in place since gold touched an all-time high of $1,920.30 in 2011, Butler said.

"You would have thought with the Champs-Elysees attack that you would have got a little more safe-haven buying ahead of the French election," said Rob Haworth, senior investment strategist for U.S. Bank Wealth Management in Seattle.

"If you're in the gold market, there's already stretched speculation and there's not a lot of new news to drive it. So in the meantime it's probably time for a bit of a pause," he said.

Investors were also watching events in Washington. President Donald Trump's administration will unveil a tax reform plan soon and expects it will be approved by Congress this year, Treasury Secretary Steven Mnuchin said on Thursday. is at risk of some profit-taking after a strong recent run, but should be supported by other factors, analysts said.

"Gold struggled to hold this week's gains as the dollar strengthened and concerns over global risk eased. However, selling was relatively muted, which suggests a period of consolidation is now upon us," ANZ analysts wrote in a note.

Spot silver XAG= slipped 0.6 percent to $17.89 an ounce, extending losses into a fifth session, having shed more than 3 percent so far this week despite tapping a five-month high on Monday.

Platinum XPT= slipped 0.8 percent to $970, while palladium XPD= fell 1 percent at $791.75.

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.