Comments
Gold eased on Friday on a firmer dollar but uncertainty over US tax reforms helped prices stay close to a three-week high touched in the previous session.
Bullion was on track for its first weekly gain in about a month.
Spot gold was down 0.1 per cent at $1,283.61 per ounce as of 0856 GMT, although it was headed for a gain of more than 1 per cent for the week. On Thursday, it had touched its highest since October 20 at $1,288.34 an ounce.
US gold futures for December delivery were down 0.3 per cent at $1,284.20.
“Gold has struggled to gain any momentum this week despite the US tax reform hitting a few hurdles,” said Ole Hansen, head of commodity strategy at Denmark's Saxo Bank.
A slightly stronger dollar has weighed on prices on Friday, he said.
The dollar index, which weighs the greenback versus a basket of major currencies , was up 0.1 per cent, though still on track for a weekly loss, pressured by developments surrounding the tax Bill put forth by US Senate Republicans.
The Senate tax plan differed from a US House of Representatives' version on several key fronts, including how they treat the corporate tax rate, the tax deduction for state and local taxes, and the estate tax.
“Further political uncertainty in the US saw gold prices well supported. News that the Republican tax plan involved cuts being delayed until 2019 raised the ire of investors,” ANZ said in a note.
The appointment of Jerome Powell as the new US Federal Reserve chair has watered down expectations of a more hawkish stance from the central bank, and that is supportive of gold, said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
“Overall though, the picture (for gold) is range-bound trading without much changes,” To said.
Spot gold may edge up to a resistance at $1,292 per ounce, a break above which could lead to a gain to $1,299, according to Reuters technical analyst Wang Tao.
In other precious metals, palladium slipped 0.1 per cent at $1,010.50 an ounce after touching its highest since 2001 at $1,026.10 on Thursday. It was up about 1.4 per cent for the week.
Silver rose 0.1 per cent to $17.01 per ounce. It has gained 1.1 per cent for the week and is on track for its first weekly rise in four. Platinum was down 0.2 per cent at $935 an ounce after hitting a near four-week high of $939.30 on Thursday. It rose about 1.6 per cent for the week.
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.