Home » Gold teeters above $1,800 as dollar strength weighs By Reuters

Gold teeters above $1,800 as dollar strength weighs By Reuters

by EasyDailyCrypto News
0 comment 0 views
© Reuters. FILE PHOTO: Gold bars are displayed at a gold jewellery shop in the northern Indian city of Chandigarh May 8, 2012. REUTERS/Ajay Verma/Files

By Bharat Gautam

(Reuters) – Gold edged lower in choppy trade on Monday, pressured by a stronger U.S. dollar, but weakness in Treasury yields helped keep prices above $1,800.

was down 0.2% at $1,807.48 per ounce, as of 0803 GMT. U.S. rose 0.4% to $1,808.80.

Bullion prices hit a five-month low of $1,783.50 on Friday, but recovered to end the session nearly steady.

“Once again, we saw buyers support gold with its break below $1,800 on Friday, and with U.S. yields continuing to retrace, it allows the potential for gold to rise over the near term,” City Index senior market analyst Matt Simpson said.

Benchmark fell to their lowest level in a month on Friday, lifting non-yielding bullion. [US/]

“But the reality is that managed funds and large speculators are increasing their short bets against gold, and if we see a close below $1,800 then it could trigger another bout of selling,” Simpson said.

The dollar hovered close to recent two-decade highs, continuing to make dollar-priced gold less attractive for buyers holding other currencies, after playing a significant part in bullion’s worst quarterly showing in more than a year. [USD/]

Asian equities started cautiously on Monday as a run of soft U.S. data suggested downside risks for this week’s June payrolls report, while concerns about recession were still driving a relief rally in government bonds. [MKTS/GLOB]

Spot gold may test resistance at $1,820 per ounce, and a break could lead to a gain to $1,829, according to Wang Tao, technical analyst at Reuters. [TECH/C]

U.S. Federal government offices, stock and bond markets, and the Federal Reserve will be closed on Monday for the Independence Day holiday.

Spot silver eased 0.2% to $19.84 per ounce, platinum fell 0.8% to $882.26, and palladium dropped 0.7% to $1,947.35.

Related Posts

Leave a Comment