Gold edges higher as softer dollar, Gulf tensions lend support

Gold edges higher as softer dollar, Gulf tensions lend support

Reuters  | Sep 20, 2019 04:19

Gold edges higher as softer dollar, Gulf tensions lend support

* Spot gold stuck in narrow range of $1,488-$1,514/oz -technicals

* Palladium scales record peak of $1,646.81/oz

* Dollar gives up gains against most major currencies

By Eileen Soreng

Sept 20 (Reuters) - Gold prices rose on Friday and were headed for their first weekly gain in a month, supported by a softer dollar, tensions in the Middle East and caution about Sino-U.S. trade talks, while palladium climbed to a fresh record peak.

Spot gold XAU= was up 0.3% at $1,503.36 per ounce, as of 0800 GMT, up about 1% this week. U.S. gold futures GCv1 were up 0.5% at $1,513.5 per ounce.

"A weaker U.S. dollar is giving gold a little bit of an upward drift," said Michael McCarthy, chief market strategist at CMC Markets, adding that "prices are still very much in the middle of a trading range and pinned to $1,500 level."

The dollar slipped on Friday and was headed for a third straight week of losses as central banks in Japan, the UK and Switzerland refrained from cutting rates. USD/

"Investors are all waiting on any further developments in the trade negotiations as they move towards October meeting and that may provide next big driver for gold prices," McCarthy said.

U.S. and Chinese deputy trade negotiators resumed face-to-face talks for the first time in nearly two months on Thursday, trying to lay the groundwork for high-level talks in early October. prices have risen about 17% this year mainly on U.S.-China trade tensions, concerns over the global economic growth outlook and prospects of monetary easing by central banks.

The Fed cut interest rates for the second time this year on Wednesday to help sustain economic expansion but gave mixed signals on future rate cuts. giving bullion a lift were tensions in the Middle East as the United States said on Thursday it was building a coalition to deter Iranian threats following a weekend attack on Saudi Arabian oil facilities. strategy for retaliation against the attacks on Saudi oil plants is not clear and the uncertainties are keeping gold's safe-haven bid intact, said Vandana Bharti, assistant vice-president of commodity research at SMC Comtrade.

On the technical front, signals are mixed for spot gold as it is stuck in a narrow range of $1,488-$1,514 per ounce, according to Reuters technical analyst Wang Tao. palladium XPD= rose 1% to $1,640.15 per ounce, having hit a record peak of $1,646.81. Prices were up 2% for the week in a seventh straight weekly gain.

Platinum XPT= and silver XAG= were up 0.7% at $943.52 and $17.89 per ounce, respectively.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

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.

English (USA) English (UK) English (India) English (Australia) English (South Africa) English (Philippines) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+