Reuters logo
PRECIOUS-Gold steadies as weakened dollar slips further
November 23, 2017 / 11:31 AM / 18 days ago

PRECIOUS-Gold steadies as weakened dollar slips further

    * Cautious FOMC minutes send dollar lower in holiday week
    * Chinese stocks slide dampens risk appetite
    * Markets in Japan, U.S. closed on Thursday

 (Updates prices, adds details)
    By Maytaal Angel
    LONDON, Nov 23 (Reuters) - Gold steadied on Thursday after
rising nearly 1 percent in the previous session as the dollar
sank on reduced expectations for U.S. interest rate hikes next
year.
    The dollar suffered its biggest drop in five months on
Wednesday after minutes from the U.S. Federal Reserve's showed
"many participants" were concerned inflation would stay below
the bank's 2 percent target for longer than expected.       
    The greenback was still nursing losses on Thursday,
supporting dollar-priced gold by making it cheaper for non-U.S.
investors.
    Spot gold        was 0.1 percent lower at $1,290.82 per
ounce by 1313 GMT on Thursday. 
    U.S. gold futures         for December delivery were 0.1
percent lower at $1,291.20.
    "Gold is obviously still in need of a spark but we still see
a chance of it reaching our year-end target of $1,325," said Ole
Hansen, head of commodity strategy at Saxo Bank.
    "The outlook for inflation is still low, long yields will
remain subdued and then we have geopolitical risks rising this
year. That's enough to prompt investors to buy gold, even though
the growth outlook is still strong across the world." 
    Trading was lighter than usual on Thursday, with Japanese
financial markets shut for a public holiday while U.S. markets
will be closed for the Thanksgiving holiday.
    In wider markets, Chinese stocks suffered their biggest fall
in almost two years, weighing on global equities, denting risk
appetite and providing underlying support for gold, seen as a
safe haven asset.            
    With Chinese stocks down, low yielding currencies such as
the Japanese yen and the Swiss franc remained firmly supported
against the dollar.
    Earlier this week, Fed Chair Janet Yellen stuck by her
prediction that U.S. inflation would soon rebound, but offered
an unusually strong caveat that she was "very uncertain" about
this and open to the possibility that prices could remain low
for years to come.
    Holdings of the largest gold-backed exchange-traded-fund
(ETF), New York's SPDR Gold Trust GLD, and the largest
silver-backed ETF, New York's iShares Silver Trust SLV, were
unchanged on Wednesday from Tuesday.             
    Spot gold may test a support at $1,283 per ounce as it
failed to break resistance at $1,297, according to Reuters
technical analyst Wang Tao.              
    In other precious metals, silver        slipped 0.2 percent
to $17.12 an ounce, platinum        fell 0.9 percent to $930.20
an ounce, while palladium        was flat at $1,001.95 an ounce.

 (Additional reporting by Vijaykumar Vedala in Bengaluru;
Editing by Mark Potter/Susan Fenton/Alexander Smith)
  

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