• Gold rose on Thursday, rising quietly above the prior session's five-week low as the dollar steadied and the200-day moving average provided short-term support below the market.
• Spot gold <XAU=> was up 0.3 percent at $1,249.17 an ounce by 3:04 p.m EDT (1904 GMT). It had added0.3 percent in the previous session after touching a five-week low of $1,240.75. U.S. gold futures <GCcv1> for August delivery settled up 0.3 percent at $1,249.40.
• "Today is strictly a bounce day. You can't say this is anything more than a onsolidation in gold," said Bill O'Neill, co-founder of LOGIC Advisors, adding that a rise above $1,260 could attract technical buying and higher prices.
• World stock markets edged higher, buoyed by a modest rebound in oil prices after the commodity hit 10-month lows, while the U.S. yield curve managed to stall its recent flattening.
• "The uncontrolled oil price spill in the futures markets may have seen some traders pushing the risk aversion button and buying gold," said Jeffrey Halley, senior market analyst at OANDA.
"The primary driver appears to be the flattening of the longer-dated U.S. Treasury curve," he said.
• The U.S. Treasury yield curve flattened to almost 10-year lows on Wednesday as investors evaluated the impact of hawkish Federal Reserve policy on the economy even as inflation measures are deteriorating.
• "The U.S. is on a solid growth path and on cruising speed, which justifies higher interest rates and also a stronger U.S dollar. This is something we believe will cause some headwinds for gold," Julius Baer's Menke said.
• In technicals, Mitsubishi analyst John Butler said any significant break on either side of $1,250 would be important for the price.
• Among other precious metals, silver <XAG=> gained 0.9 percent to $16.57 per ounce.
Reference: Reuters
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