· Gold prices edged down on Friday, after declining as much as 1% in the previous session, as easing tensions in the Middle East prompted investors to move back to riskier bets.
Spot gold fell 0.1% to $1,550.66 per ounce by 0732 GMT. Prices fell to their lowest since Jan. 3 at $1,539.78 on Thursday. U.S. gold futures eased 0.2% to $1,551.60.
· Meanwhile, global stocks rallied to hit record highs after comments from U.S. President Donald Trump and Iran pointed to a de-escalation in military tensions, even as the U.S. increased sanctions on Iran.
· "We are looking at the risk-on sentiment, a stronger dollar, and surging equities," Stephen Innes, a market strategist at AxiTrader said.
"Besides the U.S. president suggesting that Iran is standing down, House Speaker Nancy Pelosi's legislation to limit Trump's executive powers against Iran is reducing the pressure in the Mideast."
Further weighing on gold, the dollar looked set to post its best week in two months.
· On the trade front, a 'Phase 1' trade deal between Washington and Beijing could be signed shortly after Jan. 15, Trump said on Thursday.
· Investors now await U.S. non-farm payrolls due at 1330 GMT.
· "Gold remains on the back foot in Asia ... as traders price out the geopolitical risk in precious metals," Jeffrey Halley, a senior market analyst for the Asia-Pacific region at OANDA said in a note.
"A break of $1,540 implies that a deeper correction to $1,520 could occur."
Indicative of sentiment, holdings of the world's largest gold-backed exchange-traded fund SPDR Gold Trust, fell 0.5% to 882.12 tonnes on Thursday.
· Elsewhere, palladium fell 0.3% to $2,101.81 an ounce, having hit a record peak of $2,149.50 in the previous session on supply woes. For the week, the metal was set to post its best week since mid-June, rising nearly 6% so far.
· Silver rose 0.2% at $17.93 per ounce, but was on track for its worst week in five, while platinum edged up 0.2% to $968.49
· Gold: On a slippery ground below $1550 as trade sentiment stays positive
Gold prices extend declines below $1,550, at $1,548.55 currently, during the early Friday. The yellow metal has been under pressure off-late, mainly due to the de-escalation of odds favoring the US-Iran war. Also contributing to the Bullion’s weakness is the strong US dollar.
Technical Analysis
Buyers will look for entry beyond the support-turned-resistance, September month high, of $1,557 whereas sellers will now keep eyes on September 24/25 tops near $1,535 ahead of targeting the November month peak, at $1,515.38.
Reference: Reuters, FX Street
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