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Gold eases as dollar recovery offsets dovish Fed

Reuters  |  BENGALURU 

By Arijit Bose

BENGALURU (Reuters) - Gold eased on Thursday, holding below the key $1,300 an ounce level, as the dollar bounced back from lows, with the paring back gains seen after dovish minutes in the previous session.

Spot gold fell 0.3 percent to $1,288.76 per ounce as of 11:20 a.m. ET (1620 GMT), having reached $1,297.08 earlier in the session.

U.S. gold futures shed 0.2 percent to $1,289.40 per ounce.

"Gold has seen some consolidation beneath the psychological $1,300 level, with a pull on each side of the market," said David Meger, trading at High Ridge Futures.

"There is some support from the Fed less likely to raise interest rates and yet on the other side a little lesser need for safe haven as we've seen a rebound in equities as of late."

Global markets have been on the rise for the previous four sessions, but lost steam on Thursday on limited clarity from U.S.-trade talks.

With a three-day meeting between the and having concluded, the Chinese commerce ministry said that progress was made on "structural issues" like and intellectual property rights without shedding further light on key issues relating to trade.

"So far this week, (gold) prices have failed to fall below $1,277 and are now trying to attack again the $1,300 level. If they manage to reach this threshold, there would be space for further rallies," said in a note.

Gold rose about 0.6 percent after minutes from the (FOMC) released on Wednesday showed several policymakers urged patience about future interest rate hikes in the December meeting.

But a recovery in the dollar from three-month lows have been weighing on prices, making bullion more expensive for holders of other currencies.

In other metals, palladium fell about 0.5 percent to $1,320.45 per ounce, after scaling an all-time high of $1,342.43 in the previous session.

"There is always a potential for some profit-taking in palladium," said analyst

"With the fact that reports on the trade front were a bit further away from an agreement than what appeared to be the case this time yesterday, a little bit of the froth in palladium prices is being removed."

Silver fell 0.8 percent at $15.62 per ounce, while platinum was steady at $824.80.

(Reporting by Arijit in Bengaluru; Editing by Frances Kerry)

(This story has not been edited by Business Standard staff and is auto-generated from a syndicated feed.)

First Published: Thu, January 10 2019. 22:26 IST