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• Investors took cover in the greenback after Bloomberg reported that Washington is preparing to announce tariffs on all remaining Chinese imports by early December if talks next month between U.S. President Donald Trump and Chinese President Xi Jinping fail to ease the trade war.
A stronger dollar makes bullion more expensive for holders of other currencies.
Spot gold was down 0.4 percent at $1,224.80 an ounce at 0721 GMT. U.S. gold futures were down 0.1 percent at $1,226.30 an ounce.
• “There is a little bit of pressure from the dollar for now. But, overall gold prices look fundamentally supported. Market sentiment is still very cautious. We feel upside potential for gold at $1,255is highly possible,” said Benjamin Lu, a commodities analyst with Phillip Futures.
“Gold prices have started seeing some strength, unlike the previous two quarters, from geo-political factors. Dollar is still very strong and may limit the upside in gold prices. But it doesn’t look like gold will lose steam due to the dollar vigour for now.”
• “The rally in gold seems to be exhausted near the level of $1,240. To break this level, it really needs big triggers,” said Vandana Bharti, assistant vice president of commodity research at SMC Comtrade Ltd.
“It was a correction in the equity markets that provided the recent upside in gold. If equity markets tumble further, which we expect due to trade war and other issues, then we may see fresh buying in gold.”
• Spot gold may test a support at $1,217 per ounce, a break below which could cause a loss to the next support at $1,208, said Reuters technical analyst Wang Tao.
Meanwhile, silver was flat at $14.45 per ounce, near a more than two-week low of $14.38 hit in the previous session.
• Platinum rose 0.1 percent to $833.10 per ounce and palladium climbed 0.3 percent to $1,092.0 per ounce.
Reference: Reuters
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