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Wednesday, February 6, 2019 - 10:18:49 PM
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Mining News Pro - Gold likely to hold $1,310-$1,320 range this week-analyst.
According to Mining News Pro - Dollar firm near two-week high.
Gold eased on Wednesday on a firmer dollar but uncertainty about U.S.-Chinese relations and Britain`s departure from the European Union meant there was little clear direction. Spot gold was 0.1 percent lower at $1,313.27 per ounce at 1235 GMT. U.S. gold futures were down about 0.2 percent at $1,317.20 per ounce. Liquidity remained low with China and several other markets in Asia closed for the Lunar New Year holiday. "There is lack of direction in the market and sentiment is neutral. The market wants more clarity on Brexit and the U.S.-China trade front," said ABN AMRO analyst Georgette Boele, adding the stronger dollar was keeping gold under pressure. Gold is likely to be range bound between $1,310 and $1,320 this week with $1,300 as the nearest support level, she added.
Bullion found some support after President Donald Trump repeated his promise to build a border wall in his State of the Union address, raising the prospect of another U.S. government shutdown, analysts said. "Gold is still consolidating above $1,300," Capital Economics analyst Ross Strachan said. Trump also said a trade deal was possible with China if Beijing agreed to "real structural change". Senior U.S. and Chinese officials are set to start another round of talks in Beijing next week. Trump has previously said the United States will increase tariffs on $200 billion worth of Chinese imports if the two sides cannot reach a deal by March 2. The dollar index edged up on Wednesday, standing near a two-week high.
Investors are keeping a close eye on signals from the U.S. Federal Reserve on its future monetary policy trajectory. Dallas Fed President Robert Kaplan said the central bank should leave interest rates where they were until the U.S. economic outlook was clearer. The Fed promised last week to be "patient" with its rate moves due to an impending slowdown and uncertain trade backdrop. A cut in interest rates would add pressure to the U.S. currency and support dollar-denominated bullion by making it cheaper for holders of other currencies.
Reflecting the subdued sentiment, holdings in the world`s largest gold-backed exchange-traded fund, SPDR Gold Trust , have fallen for three straight sessions. Among other precious metals, palladium dipped 0.7 percent to $1,371.50 per ounce. Silver was down 0.6 percent at $15.74 per ounce, and platinum slipped 0.4 percent, to $812.50 per ounce.
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https://www.miningnews.ir/En/News/334403
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