Gold edges away from 7-week high as dollar steadies

Date:

Gold edged lower on Wednesday as the dollar firmed and as investors took profits after downbeat U.S. data propelled prices to a seven-week high in the previous session.

Thank you for reading this post, don't forget to subscribe!

“At the moment, the upside looks a little bit limited. We’re seeing obviously some increase … in net long-positioning in the market, but we’re seeing some selling come through on the ETF side as well,” said ANZ analyst Daniel Hynes, referring to exchange traded funds.

“So it’s going to be difficult for gold to break out of (its) range for the next week or two.”

Spot gold had fallen 0.2 percent to $1,265.80 per ounce at 0638 GMT. The day before, it hit its highest since June 14 at $1,273.97.

U.S. gold futures for December delivery declined 0.6 percent to $1,272.30 per ounce.

A gauge of U.S. factory activity slid from a near three-year high in July amid a slowdown in new orders, and consumer spending barely rose in the prior month, setting the stage for a moderate economic expansion in the third quarter.

“I think investors are probably looking for some further evidence of stronger inflation numbers before they get a little bit more optimistic about a rate hike, which would clearly be a headwind for gold prices if the probability of that starts to rise,” Hynes said.

The largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust,, saw holdings decrease by over 7 percent in the month of July, the biggest monthly outflow since April 2013.

The fund has seen outflows of over 24 tonnes since July 21.

The dollar clung to modest gains on Wednesday after bouncing from 15-month lows, benefiting from a pause in selling of the battered currency as investors begin positioning for key events this week, notably Friday’s U.S. employment report.

For potential impact on the dollar, the market was also waiting for the U.S. ADP jobs report and comments by San Francisco Fed President John Williams and Cleveland Fed chief Loretta Mester later in the session.

Spot gold may break support at $1,264 per ounce and fall to the next support level at $1,258, as suggested by its wave pattern and a Fibonacci retracement analysis, according to Reuters technical analyst Wang Tao.
ADVERTISING

Meanwhile, silver slipped 0.6 percent to $16.60 per ounce. It touched its highest since June 29 earlier in the session.

Platinum edged down 0.1 percent to $942.90 per ounce, after rising to its highest in seven weeks earlier in the day.

Palladium drifted 0.3 percent lower to $889.60 per ounce. In the previous session, it marked its highest since June 13.

Reporting by Nithin Prasad and Arpan Varghese in Bengaluru; Editing by Richard Pullin and Joseph Radford

Naija247news
Naija247newshttps://www.naija247news.com/
Naija247news is an investigative news platform that tracks news on Nigerian Economy, Business, Politics, Financial and Africa and Global Economy.

Share post:

Subscribe

Popular

More like this
Related

“Zack Orji survived two brain surgeries” – Emeka Rollas gives update

March 28, 2024. Azonuchechi Chukwu. The national president of the Actors...

Sokoto kidnap victim who spent 96 days in bandits’ captivity dies after regaining freedom

March 28, 2024. Azonuchechi Chukwu. A kidnap victim, Salisu Iliyasu Takakume,...

Thirteen Residents Arrested For Failing To Use Pedestrian Bridge in Lagos

March 28, 2024. Azonuchechi Chukwu. Thirteen residents in Lagos state have...

Dangote budgets N15bn for food intervention across Nigeria

March 28, 2024. Azonuchechi Chukwu The Aliko Dangote Foundation, (ADF) has...
Social Media Auto Publish Powered By : XYZScripts.com

Discover more from Naija247news

Subscribe now to keep reading and get access to the full archive.

Continue reading