• Gold turned positive on Tuesday as investors bought when it approached $1,200 per ounce. But bullion remained under pressure after hitting a two-week low and the dollar resumed its ascent amid broad risk-off sentiment, looming U.S. interest rate rises and prospects for escalating U.S.-China trade tensions.
• Silver also succumbed to the market pressures, hitting a 2-1/2 year low.
• Investors began purchasing more gold as it crept toward the psychologically-important $1,200 level, said Phil Streible, senior commodities strategist at RJO Futures in Chicago.
• “Some investors see below $1,200 as a small window to buy, because historically we haven’t seen gold remain below $1,200 since late December 2016, even though I think it’s going to go down to match those previous lows,” he said.
• Spot gold gained 0.2 percent at $1,197.28 per ounce by 1:49 p.m. EDT (1749 GMT). U.S. gold futures for December delivery settled up $2.40, or 0.2 percent, at $1,202.20 per ounce.
• “Higher real yields are stimulating the dollar, but gold is pretty subdued, which to me, means there’s a little bit of balance,” said Rob Haworth, senior investment strategist for U.S. Bank Wealth Management.
• The dollar edged up versus a basket of major currencies. Later in trade, the greenback backed off its earlier highs, which helped push gold higher.
• Since its April peak gold has dropped more than 10 percent as a trade war between China and the U.S. has driven investors to seek safety in the dollar rather than in gold, a traditional safe haven.
• Bearish bets on Comex gold have risen to record levels while investors have liquidated exchange-traded gold fund holdings.
• Gold is finding strong resistance at $1,200, with investors selling into any rallies that threaten to push it above that level, ANZ analysts said in a research note.
• Silver fell 0.4 percent at $14.10 per ounce, having hit its lowest since January 2016 at $13.90.
• Platinum gained 0.6 percent at $786.99 per ounce, while palladium lost 0.4 percent at $971.49 after hitting its highest in nearly 12 weeks at $991.15 on Monday.
Reference: Reuters
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