LONDON, Sept 17, 2018 (News Wires) - A softer dollar and short- covering lifted gold on Monday after two sessions of declines, but investors prepared for more weakness as simmering US-China trade tensions suggested the currency would stay supported.
Spot gold was up 0.7 per cent at $1,201.01 an ounce by 14:00 GMT after falling 0.6 per cent on Friday, when it marked its third straight weekly decline. US gold futures added 0.4 per cent to $1,205.70 an ounce.
The dollar index was down 0.4 per cent at 94.506 after seeing its biggest daily rise since Aug. 23 on Friday.
"Net short (speculative) positions in gold... are still at a high level at a good 75,000 contracts... so there is further potential for short covering and therefore for higher prices from this side," Commerzbank said in a note.
China's Foreign Ministry said on Monday that the government would respond if the United States implements new tariffs, ahead of US President Donald Trump's expected announcement of new duties on $200 billion in Chinese goods.
"The main issue is that this concern over trade tensions between the US and China is translating into a stronger dollar, and that is weighing on gold," said Jonathan Butler, commodities analyst at Mitsubishi in London.
"I think we'll continue to see gold under pressure. As long as the dollar remains relatively well supported, yields continue to rise and the US economic growth story remains in place, it's hard to see where a strong rally would come from in gold," Butler said.
Gold prices have declined more than 12 per cent from April, hurt by intensifying global trade tensions and rising US interest rates.
Though gold is generally presumed to be a safe-haven asset, the months- long trade rift between Washington and Beijing has prompted investors to largely opt for the US dollar in the belief that the United States has less to lose from the dispute.
Among other precious metals, spot silver climbed 1.2 per cent to $14.20 an ounce.
Palladium edged up 0.4 per cent to $982 while platinum gained 1.6 per cent to $804.10 an ounce.
Butler said although platinum last month touched a low of $751.25 not seen since the financial crisis in 2008, the supply and demand situation was different.
"Although we're looking at a market that's in a small surplus this year, it's still a very different story from 2008, it doesn't justify platinum having a $700 handle," he said.
"Diesel is in decline, but we still have a healthy 3 million ounces or so of demand from that source this year, as opposed to 2 or 2.5 million in 2008."
LONDON, Sept 14, 2018 (News Wires) - Gold edged higher on Friday, supported by a drop in the dollar, but gains were tempered by expectations of a US rate hike later this month.
The dollar index slipped to a 1-1/2 month low after weaker-than-expected US inflation data and a recovery in emerging markets, but had rebounded to trade slightly firmer in the European afternoon after US industrial output rose.
Spot gold was up 0.2 per cent at $1,202.61 an ounce by 13:50 GMT, having hit its highest since Aug. 28 at $1,212.65 on Thursday. It has risen 0.6 percent so far this week, on track for its first weekly gain in three.
US gold futures dipped 0.1 per cent to $1,207.60 an ounce.
"We've seen quite a bit of weakness in the dollar which has supported gold, but we're not out of the woods yet," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen.
"The fact that gains weren't stronger has still got to do with gold's focus on the Chinese renminbi, which remains a bit challenged, but also that the market is starting to look forward to the next US rate hike."
Gold has shown a close correlation to the currency of China, the biggest gold consuming nation, analysts say.
Investors widely expect another 0.25 percentage point interest rate hike when the US central bank meets on Sept. 25-26, and there is a strong chance of another increase in December.
Higher rates make gold less attractive since it does not pay interest but costs money to store and insure.
The months-long trade tension between Washington and Beijing has prompted investors to buy the US dollar in the belief that the United States has less to lose from the dispute.
However, the demand for the dollar eased this week on news that the White House had invited Chinese officials to restart trade talks.
Gold prices have declined about 12 per cent from a peak of $1,365.23 in April amid intensifying global trade tensions and under pressure from rising US interest rates. This has driven investors towards record short positions in Comex gold and heavy liquidations in gold exchange-traded funds (ETF).
Holdings of SPDR Gold, the largest gold ETF, were down 0.4 per cent on Thursday and 4.1 million ounces from a April peak.
Meanwhile, spot silver rose 0.1 per cent to $14.18 per ounce, palladium added 0.2 per cent to $984.40 per ounce and platinum gained 0.4 per cent to $803.40 an ounce after touching a one-month high at $812.30 on Thursday.
"We've seen some traders dipping their toes back in platinum, which is at a near record discount to gold," Hansen said.
LONDON, Sept 7, 2018 (News Wires) - Gold steadied on Friday as the dollar slipped versus a currency basket despite fears over looming China-US trade tariffs, and as investors turned their attention to US payrolls data due later.
The public consultation period for proposed US tariffs on an additional $200 billion of Chinese imports ended at 04:00 GMT Friday. Tariffs could go into effect at any moment, though there is no clear timetable.
The dollar has gained considerably from global trade tensions but slipped off two-week highs this week, helping gold stabilise. A weaker dollar makes dollar-priced gold cheaper for non-US investors.
"I'm struggling to (see) how the dollar could extend gains from here. Other central banks are becoming hawkish, the pound could come back up and the euro, once the ECB starts tightening. Gold is due for a rally," said Fawad Razaqzada, analyst at FOREX.com.
Spot gold edged up 0.1 per cent to $1,201.04 as of 10:20 GMT, after it hit a near one-week high on Thursday at $1,206.98, and was headed for a third straight session of gains.
US gold futures rose 0.2 per cent to $1,206.70 an ounce.
BENGALURU, August 17, 2018 (News Wires) - Gold eked out small gains in Asian trade on Friday after declining to a 19-month low in the previous session, but the metal remained on track for its biggest weekly decline since mid-2017.
Spot gold was up 0.1 per cent at $1,175.22 an ounce, as of 06:37 GMT, while US gold futures were down 0.2 per cent at $1,181.30 an ounce.
For the week, spot gold has shed 2.9 per cent in what could be its sixth consecutive weekly decline. It hit its lowest since January 2017 at $1,159.96 Thursday on some aggressive stop-loss selling.
"Investors, businesses and perhaps a lot of people are looking to pick up gold and that's why we're seeing some support," said Brian Lan, managing director at dealer GoldSilver Central in Singapore.
A mild correction in the dollar, after the currency gained against most peers this week, also lent support to gold's recovery. A weaker dollar makes greenback-denominated gold cheaper for holders of other currencies.
The dollar edged further away from a 13-1/2-month high hit earlier this week, as risk aversion eased after China agreed to hold lower-level trade talks with Washington this month, offering hope that they might resolve an escalating tariff war.
Weakness in emerging-market currencies amid the Sino-US trade spat and Turkey crisis has seen investors pour money into the US dollar, leading the greenback to serve as a safe-haven asset during uncertainty.
"The dollar is still trending higher and is the safe-haven vehicle of choice, so gold is still under pressure from that source," said Nicholas Frappell, general manager with ABC Bullion.
BENGALURU, April 25, 2018 (Reuters) - Gold prices dropped on Wednesday as benchmark US bond yields poked above the three per cent level and lifted the dollar to its highest in more than three months.
Spot gold was down half-a-per cent at $1,323.59 per ounce, as of 07:59 GMT. The yellow metal rose 0.5 per cent on Tuesday to break a three-session losing streak.
US gold futures dropped 0.6 per cent to $1,325 per ounce.
Higher interest rates tend to boost the dollar and push up bond yields, putting pressure on the greenback-denominated gold.
The dollar index, which measures the greenback against a basket of currencies, rose 0.4 per cent to 91.117, its strongest since Jan. 12.
"The strength of the dollar index and rising Treasury yield confirm that the Fed's hawkish stance is not going to change anytime soon," Naeem Aslam, chief market analyst, Think Markets.
"However, I do believe that with sell-off in the equity market, investors would have to put their money (elsewhere). The safe-haven gold would attract that money flow," Aslam said.
Gold is often seen as an alternative investment during times of political and financial uncertainty.
Bengaluru, April 4 (Reuters) - Gold prices gained on Wednesday, as investors stayed away from risk assets after the United States slapped tariffs on $50 billion worth imports from China, raising the stakes in a growing trade showdown with Beijing.
Spot gold rose 0.2 per cent to $1,334.64 per ounce as of 07:00 GMT, after falling 0.6 per cent in the previous session.
The Trump administration on Tuesday announced 25 per cent tariffs on some 1,300 industrial technology, transport and medical products to try to force changes in Beijing's intellectual property practices.
"The markets will be looking out for what China will do in retaliation to such a move, that alone will have a huge potential in dragging the market sentiment and risk appetite," said OCBC analyst Barnabas Gan.
China's commerce ministry said on Wednesday it "strongly condemns and firmly opposes" the proposed US tariffs following the Section 301 probe and will take counter measures, according to the official Xinhua news agency.
"If there is any further intensification in the trade war issue and no quick resolution, we see gold prices could potentially bridge its $1,400 resistance level," Gan said.
The dollar slipped and Asian share markets faltered on simmering fears of a China-US trade war.
"It seems that investors are not panicking as much as they were, aware that these are opening gambits that will ultimately need to be negotiated quietly and away from the headlines," said INTL FCStone analyst Edward Meir.