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Gold eases as dollar recovery offsets dovish Fed minutes


By Eileen Soreng

(Reuters) - slipped on Thursday, holding below $1,300 an as the dollar bounced up off lows as investors pared back bearish positions on the U.S. currency.

Spot fell 0.4 percent to $1,288.28 per as of 1:41 p.m. ET (1841 GMT), having reached $1,297.08 earlier in the session.

U.S. futures settled down 0.4 percent at $1,287.4 per

"Gold today is being driven by a higher dollar and the two generally trade inversely, but overall it's not changing the technical stance on the asset," said Michael Matousek, at

Matousek said investors are watching to see if gold breaches the $1,300 or the $1,275 level.

The dollar index <.DXY>, which tracks the greenback against major currencies, was up 0.4 percent, recovering from a three-month low. [USD/]

A stronger dollar makes gold more expensive for holders of other currencies.

"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."

Fed said on Thursday has the ability to be patient on monetary policy given data showing stable prices, and downplayed suggestions that interest rates would be raised twice more this year.

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 and as data from and fed worries about the global economy.

In other metals, dipped 1.02 percent to $1,312.99 per ounce, a session after scaling an all-time high of $1,342.43.

"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 prices is being removed."

Silver fell nearly 1 percent to $15.60 per ounce, while platinum was down 0.6 percent at $820.20.

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

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

First Published: Fri, January 11 2019. 00:48 IST