· Gold prices fell on Thursday, after hitting a one-week high in the previous session, as fears of another round of U.S. tariffs on China and expectations of higher interest rates lifted the dollar.
· Spot gold was down 0.3 percent at $1,191.62 an ounce at 0651 GMT. Prices hit their highest since Aug. 13 at $1,201.51 in the previous session, but failed to hold the psychological $1,200 level after recovering from 1-1/2year lows touched last week.
U.S. gold futures were down 0.5 percent at $1,197.8.
· “People are worried about the fresh round of U.S. tariffs on China and are buying the dollar, which is seen as a safe haven now,” said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
· “The fear of rate hikes is also pressuring gold. Despite Donald Trump’s recent attack on rising interest rates, we think the Fed may have its way,” Fung said.
· Minutes of the Federal Reserve’s latest policy meeting suggested the U.S. central bank is on course to further raise interest rates after it raised rates twice this year.
· The dollar was up 0.3 percent against a basket of six major currencies, at 95.411.
· Markets are now keeping a close eye on the Fed’s economic symposium in Jackson Hole, Wyoming, starting Friday for any change in stance from the central bank, especially after President Donald Trump’s attack on its monetary policy early this week.
· Uncertainty stemming from legal woes facing members of Trump’s inner circle and his continued attack on the Fed could be enough to force investors to close out their record short position in gold, ANZ analysts said in a note.
· Spot silver was down 0.8 percent at $14.62 an ounce.
· Platinum fell 1.2 percent to $781.05 an ounce, while palladium fell 1 percent to $916.70, after hitting a three-week high at $928.50 on Wednesday.
· Gold is on the defensive despite escalating US-China trade tensions. The new US tariffs on $16 billion worth of Chinese goods have taken effect a few minutes ago and could invite retaliatory action from Beijing.
A bearish doji reversal would be confirmed if the metal closes below the previous day's doji candle low of $1,192. The bearish reversal, if confirmed, would mean the corrective rally from the recent low of $1,160 has ended.
Reference: FXstreet,Reuters
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