Global Stock Markets
Gold steadied on Thursday as uncertainty ahead of a European Central
Bank policy meeting and further news on US trade tariffs kept the metal
in a narrow range, though a stronger dollar pressured prices.
The dollar firmed after the White House indicated that key trading partners could be exempt from the steel and aluminium import tariffs it proposed last week.
Spot gold was at $1,325.69 an ounce by 1025 GMT, little changed from late on Wednesday, when it rose to a one-week high of $1,340.42 before closing 0.6 percent lower. U.S. gold futures were down 0.1 percent at $1,326.40. ABN Amro analyst Georgette Boele said the dollar would remain the key driver of gold prices in the near term.
The dollar firmed after the White House indicated that key trading partners could be exempt from the steel and aluminium import tariffs it proposed last week.
Spot gold was at $1,325.69 an ounce by 1025 GMT, little changed from late on Wednesday, when it rose to a one-week high of $1,340.42 before closing 0.6 percent lower. U.S. gold futures were down 0.1 percent at $1,326.40. ABN Amro analyst Georgette Boele said the dollar would remain the key driver of gold prices in the near term.
The
ECB is expected to keep policy unchanged on Thursday but could tweak
its accompanying statement to offer some clues about plans to end its
unprecedented bond purchases this year. Friday's non-farm payrolls data
for February, a key barometer of the U.S. economy, is also being awaited
for further clues on the pace of Federal Reserve rate increases.
Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
In the medium term gold will come under temporary pressure from interest rate hikes, said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
Gold is highly sensitive to rising US interest rates, which increase the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced.
In the medium term gold will come under temporary pressure from interest rate hikes, said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
Gold
traders are also awaiting further news on plans for U.S. tariffs on
some imported goods.
The White House said late on Wednesday that Canada,
Mexico and possibly other countries may be granted exemptions, at least
for a while. Trump will sign a proclamation establishing the tariffs
during a ceremony scheduled for 2030 GMT, a source familiar with the
situation said.
Silver was down 0.2 percent at $16.47 an ounce, while
platinum fell 0.4 percent to $948.70 after touching its lowest since
Jan. 4 at $943.
Palladium was down 0.1 percent at $968.50 after dropping
to its lowest since Feb. 9 at $961.55 on Wednesday.
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