Gold prices rose on Wednesday, breaking a five-day decline as the dollar slipped against a basket of currencies, with the market waiting for clues on the timing of an increase in U.S. interest rates.
KITCO said “Gold prices ended the U.S. day session firmer in quieter trading Wednesday. More mild short-covering and bargain-hunting was featured following recent declines. December Comex gold was last up $2.20 an ounce at $1,325.90. December Comex silver was last up $0.075 at $19.05 an ounce.”
UBS Wealth Management Research said in a note that it held its three-month price range at $1,275-$1,425 an ounce, but raised its six- and 12-month forecasts to $1,350. "Gold is open to setbacks in the short term, given the elevated long speculative positioning and pessimistic rates markets," UBS said.
The markets have had few fundamental cues to work with so far this week, but that will change on Thursday, as the US releases retail sales, PPI, the Philly Fed Manufacturing Index and unemployment claims. If these numbers are stronger than expected, speculation about a September hike will rise and the US dollar could gain ground.
Reference: KITCO, Reuters, Investing
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