· Gold has risen as US and European stock markets retreated, but its gains have been curtailed after data showing a tightening jobs market and accelerating inflation briefly lifted the US dollar.
· The US dollar index later steadied. The metal is consolidating after sliding to its lowest in eight weeks on Tuesday at $US1,213.81 an ounce, analysts said.
· Spot gold was up 0.4 per cent at $US1,223.6 by 1:52 pm Thursday EDT (0552 AEST), following eight sessions in which prices have been flat or fallen. Earlier it climbed as high as $US1,227.70.
· "It looks like gold is following stocks and the US dollar, but overall I would say it may have found a bottom, at least for the time being," Afshin Nabavi, head of trading at MKS in Switzerland said.
"All we need is some good physical demand." Some physical buying has come through of late, he said, but not as much as would have been expected given the price drop. "Premiums have been rather poor," he said.
· US gold futures settled up 0.4 per cent at $US1,224.20.
· "I think it's a market looking for the next catalyst. Speculators are stuck waiting," said Rob Haworth, senior investment strategist for US Bank Wealth Management in Seattle.
"Higher real rates in the US, better economic growth in Europe; those all end up being headwinds," he said.
· Analysts at ScotiaMocatta said the metal would struggle to rise above technical resistance at its 100-day moving average, now at $US1,226. Support for the metal was at $US1,195, they said.
· Expected US interest rate rises this year by the Federal Reserve will put pressure on bullion, ABN Amro analyst Georgette Boele said.
· Gold is highly sensitive to rising US rates, which increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
· Among other precious metals, silver was up 0.8 per cent at $US16.27 an ounce and platinum was 0.4 per cent higher at $US912.
Reference: Business News
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