· Gold dipped on Wednesday, weighed down by a firmer dollar which found support from mounting expectations the U.S. Federal Reserve will not cut interest rates soon, while palladium retreated from record highs.
· Spot gold dipped 0.1% to $1,474.91 per ounce. U.S. gold futures also inched down 0.1% to settle at $1,478.70.
· Holdings of the world’s largest gold-backed exchange-traded fund, SPDR Gold Trust, rose 2.63 tonnes to 880.66 tonnes on Wednesday.
· “The strength of the dollar is weighing on gold, coupled with the fact that the trade deal has removed the urge to get into safe havens like gold or yen,” said Edward Meir, analyst at ED&F Man Capital Markets. “We are kind of watching the paint dry... Big and complex issues are deferred and even the Phase 1 deal is not completely nailed down yet.”
· The U.S. currency against a basket of others held gains at 97.41. Due to a lack of follow-through on the upside in gold, investors had started modestly selling the metal, said Afshin Nabavi, senior vice president at precious metals trader MKS SA, adding a break of the $1,465-$1,495 range could attract fresh interest.
· Gold, on track for its biggest annual gain since 2010, is supported on the back of recessionary fears and as major central banks around the world resort to monetary easing. The U.S. House of Representatives is due to vote later in the day on whether to impeach President Donald Trump.
· Further support for bullion came from fresh fears of a no-deal Brexit, analysts said. On Tuesday, Britain set a hard deadline of December 2020 to reach a new trade deal with the European Union, reviving fears of a chaotic exit from the bloc.
· Palladium retreated from a near $2,000 record peak hit on Tuesday, falling 1.5% to $1,925.48.
· “The (palladium) market is blowing off froth and is likely to mark time towards year-end, but tightness in supply is unlikely to be mitigated in the near future,” INTL FCStone analyst Rhona O’Connell said in a note.
· Among other precious metals, platinum rose 0.7% to $933.74 an ounce, and silver fell 0.1% to $16.99.
Reference: CNBC
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