• Gold held steady on Friday above a five-week low touched earlier this week while gold prices climbed to one-week highs on Friday, boosted by a lower dollar and economic and political uncertainty around the world, but the prospect of further interest rate rises in the United States limited gains.
• Spot gold was up 0.6% at 1,257.1 an ounce at 13.20pm GMT after earlier touching a session high at1,258.81. US gold futures rose +0.56% to 1,256.4. However, gold is little changed from last week.
• "The broad story is the tug of war between the Fed, which seems determined to push on with monetary tightening and reducing its balance sheet and political uncertainty," said Danske Bank analyst Jens Pederson.
Allegations of ties to Russia have cast a shadow over US President Donald Trump’s first five months in office, North Korea testing a rocket engine and Brexit negotiations are all fuelling concern about global stability.
• "Political noise out of Washington regarding Trump’s ties with Russia is unlikely to provide lasting support to gold while an escalation of the geopolitical tensions with North Korea is a bullish wild card," Julius Baer analysts said in a note.
"Facing higher interest rates and a stronger dollar, we still see gold prices weakening towards 1,200 per ounce over the coming months."
• The Fed’s rate rise on June 14 saw investors sell gold. Holdings of the largest gold-backed exchange-traded-fund (ETF), New York’s SPDR Gold Trust, have fallen to 27.456-million ounces from 27.875-million ounces on June 13.
• On the technical side, the first upside barrier comes inaround 1,260 near the 55-day moving average. That is followed by the 21-day moving average at around 1,264, while the 100-day moving average at 1,249 provides strong support.
• Elsewhere, silver gained 1.1% to 16.71 an ounce, platinum climbed 0.3% to 924.2 an ounce and palladium rose 0.8% to 877.2.
Reference: Reuters
Thai
Eng