Comments
Gold nudged lower on Thursday, giving up some of its gains made after US President Donald Trump's threat of a government shutdown, with investors remaining focused on a major central bankers conference in Jackson Hole.
Spot gold was down 0.2 per cent at $1,287.21 an ounce, as of 0700 GMT, after gaining 0.4 per cent in the previous session. US gold futures for December delivery slipped 0.2 per cent to $1,292.40 per ounce.
“It's a bit lower with lack of catalysts and people trading sideways. It's going to be trading in a very tight range,” said Richard Xu, a fund manager at China's biggest gold exchange-traded fund, HuaAn Gold.
“The market is pricing in the Federal Reserve's actions at the Jackson Hole meeting and people are expecting some kind of tightening going on in that space. So that's why gold is going to be under some kind of pressure.”
Jackson Hole conference
Markets were focused on an annual meeting of central bankers in Jackson Hole, Wyoming, starting on Thursday, where Federal Reserve Chair Janet Yellen and European Central Bank chief Mario Draghi are set to deliver speeches on Friday, on the outlook for monetary policy and interest rates.
ECB's Draghi had on Wednesday warned against hasty policy responses and said gaps in understanding the workings of new policies remain.
Gold is highly sensitive to rising US interest rates, as these increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
US govt shutdown threat
The dollar edged higher against the yen on Thursday, paring some of the losses it suffered after US President Donald Trump suggested a shutdown of the government was possible and threatened to terminate the North American Free Trade Agreement.
“This entire situation would continue to help gold in the short and longer term. The big upward push for the gold price which we are not seeing is because of the possibility of some unexpected hawkish comments by Janet Yellen during her upcoming speech,” said Naeem Aslam, chief market analyst, Think Markets.
Spot gold may test a resistance at $1,294 per ounce, a break above which could lead to a gain to the next resistance at $1,297, Reuters technical analyst Wang Tao said.
Among other precious metals, silver was nearly unchanged at $17.00 an ounce, while platinum edged 0.3 per cent lower to $973.30 an ounce. Palladium fell 0.5 per cent to $928.00 per ounce.
Comments
COMMENT NOW
Comments
Comments have to be in English, and in full sentences. They cannot be abusive or personal. Please abide by our community guidelines for posting your comments.
We have migrated to a new commenting platform. If you are already a registered user of TheHindu Businessline and logged in, you may continue to engage with our articles. If you do not have an account please register and login to post comments. Users can access their older comments by logging into their accounts on Vuukle.