Reuters logo
PRECIOUS-Gold up on safe-haven bid, but on track for worst week since Nov
May 5, 2017 / 3:51 AM / 5 months ago

PRECIOUS-Gold up on safe-haven bid, but on track for worst week since Nov

    * Spot gold may fall to $1,209 -technicals
    * SPDR Gold holdings down 0.28 tonnes
    * All precious metals set to end week down
    * U.S. jobs data due later on Friday

 (Adds comments, updates prices)
    By Swati Verma
    BENGALURU, May 5 (Reuters) - Gold rose on Friday as
investors took refuge in the safe-haven bullion as stock prices
tumbled on the back of sliding oil and iron ore prices, but the
yellow metal was on track for its biggest weekly decline in
nearly six months.
    Spot gold        rose 0.5 percent to $1,233.10 per ounce as
of 0746 GMT.
    "Gold has rallied in Asia as traders flee to safe havens
following oil and iron ores collapse in Asia today. Nervousness
about Chinese growth and OPEC's next move, if any, will most
likely be the front and centre issues to dominate the end of the
week," said Jeffrey Halley, senior market analyst at OANDA. 
    Asian stocks declined on Friday as the drop in commodities
raised concerns about the health of the global economy with oil
prices falling more than 3 percent at one stage.
                
    "Additionally with event risk in the shape of tonight's
non-farm payrolls and Sunday's French election, traders are
opting for a safety first approach into the weekend," Halley
said.
    U.S. gold futures         were up 0.4 percent at $1,233.40
an ounce.
    Gold prices edged up from a near seven-week low of $1,225.20
an ounce hit on Thursday, and is poised to end the week down
about 3 percent, the biggest percentage fall since the week
ending Nov. 11.
    "The small rally is likely a little position squaring ahead
of tonight's job report, and an overdue bounce after a few days
of declines," said Jordan Eliseo, chief economist at ABC
Bullion.
    The markets are awaiting the April jobs report for insight
into the Federal Reserve's rate trajectory through the end of
the year.
    A strong non-farm payrolls number would raise expectations
of a rate hike in June and have a negative impact on gold, said
Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong
Kong.
    Spot gold may fall to $1,209 per ounce, as it has pierced
below a support at $1,229, according to Reuters technical
analyst Wang Tao.             
    Spot silver        rose 0.8 percent to $16.41, after hitting
a four-month low of $16.17 in the last session. The metal was
set to fall nearly 5 percent this week, its third weekly
decline.
    Platinum        was up over 1 percent at $908.25 an ounce.
The metal fell to its lowest since December on Thursday and is
set to dip over 4 percent this week.
    Palladium        gained 0.2 percent to $805.20 an ounce and
was poised for the worst week since the week of March 10.

 (Reporting by Swati Verma in Bengaluru; Editing by Gopakumar
Warrier and Christian Schmollinger)
  

Our Standards:The Thomson Reuters Trust Principles.
0 : 0
  • narrow-browser-and-phone
  • medium-browser-and-portrait-tablet
  • landscape-tablet
  • medium-wide-browser
  • wide-browser-and-larger
  • medium-browser-and-landscape-tablet
  • medium-wide-browser-and-larger
  • above-phone
  • portrait-tablet-and-above
  • above-portrait-tablet
  • landscape-tablet-and-above
  • landscape-tablet-and-medium-wide-browser
  • portrait-tablet-and-below
  • landscape-tablet-and-below