You are here: Home » Reuters » News
Business Standard

Gold falls from 11-week high on stronger dollar, profit-taking

Reuters  |  NEW YORK/LONDON 

By and Shabalala

NEW YORK/LONDON (Reuters) - Gold retreated from an 11-week high on Thursday, with investors booking profits as the U.S. dollar gained, but bullion's losses were limited as investors remained worried about rising military tensions in and lingering concerns of a trade war with

Snapping a four-day winning streak, spot gold fell 1.1 percent at $1,337.55 per ounce by 1:40 p.m. EDT (1740 GMT). U.S. gold futures for June delivery settled down $18.10, or 1.3 percent, at $1,341.90.

The dollar index gained against a basket of currencies, dragging commodities priced in the greenback.

"There's profit-taking and a little recovery in the equity markets," said Chris Gaffney, of world markets at "There's still a good solid floor underneath the precious metals with and trade tensions with China, so I think we've got a floor around $1,340."

Underpinning bullion was that British ministers planned to gather to discuss whether to join the and in possible military action in that could bring direct confrontation between Western and Russian forces.

On Wednesday, U.S. warned of imminent military action in over a suspected gas attack, declaring that missiles "will be coming" and lambasting for standing by Syrian

Gold is often used as a store of value during times of financial or political uncertainty, generally gaining along with assets such as the Japanese yen and U.S. Treasuries.

"Expectations are that $1,350 will act as an initial pivot point for near-term pricing," said

"However, more importantly, key downside support around $1,335 to $1,340 should provide a base for a further test through the January high of $1,366."

The U.S. economy showed signs of strength, minutes from the last Federal Reserve meeting showed on Wednesday, increasing the likelihood of U.S. interest rates hikes that could pressure prices of non-yielding gold.

Silver fell 0.8 percent to $16.49 an ounce after hitting its highest in nearly two months at $16.87 in the previous session.

added 0.3 percent to $928.80 per ounce. Palladium fell 0.2 percent to $962.22, but has surged by more than 6 percent so far this week on concerns supply from top could be hurt by U.S. sanctions.

U.S. sanctions were likely an initial trigger for a price rally, said in a note, but palladium was still supported by strong fundamentals.

(Additional reporting by in Bengaluru; editing by and David Gregorio)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

First Published: Thu, April 12 2018. 23:26 IST
RECOMMENDED FOR YOU