SINGAPORE: Gold slipped on Friday as investors locked in profits and equities recovered, but fears over a global economic slowdown and a lack of clarity on the US-China trade war kept the metal on track for its third consecutive weekly gain.
Spot gold was down 0.6% at $1,513.80 per ounce as of 0729 GMT, but is up 1.2% so far this week after rising in the previous two weeks.
US gold futures dipped 0.3% to $1,525.50 an ounce.
Limiting gold’s momentum, global financial markets regained footing on Friday, as China hinted at more support for its economy, amid growing expectations of aggressive stimulus from all the major central banks.
“Gold is consolidating here. The important consideration is that none of the headwinds have gone away; the tariffs got delayed a bit, but the underlying trade war remains and lower yields are supportive for gold,” said Ilya Spivak, senior currency strategist with DailyFx.
“Markets are looking ahead for the Jackson Hole symposium. In context of recent gains that might give us some corrective pullbacks, as people reduce risk exposure before events.”
Bullion has risen more than $100, since the beginning of the month amid the heightened trade tensions and a slew of disappointing economic data globally.
“The yellow metal continues to benefit from safe-haven inflows, which should ensure that any pullbacks are limited ahead of the weekend,” OANDA analyst Jeffrey Halley, said in a note.
Investors will shift their focus to the Federal Reserve’s annual symposium next week. Traders see about a one-in-three chance of a 50 basis-point rate cut by the Fed this September.—Reuters
Gold prices up in NY
NEW YORK: Gold prices rose on Thursday as lingering fears over a global economic downturn and lack of clarity on the US-China trade front kept the safe haven precious metal comfortably above the key $1,500 per ounce mark.
However, bullion’s gains were limited as investors took stock of mixed economic data from the United States, with strong US retail sales offering respite to battered risk appetite.
Spot gold was up 0.4% at $1,521.47 per ounce by 13:42 p.m. EDT (1742 GMT). US gold futures settled up 0.2% at $1,531.20.
At the day’s peak of $1,523.91 per ounce, gold was back to within $11 of Tuesday’s six-year high, which was followed by a 1% jump on Wednesday, due to fears of a recession as investors fretted over the trade war, unrest in Hong Kong and a slide in emerging-market assets.
“But with the US retail sales data coming out as strong as they did, that’s seeing some market participants rethink their bets,” said Daniel Ghali, commodity strategist at TD Securities.
However, the elevated levels of safe haven interest in gold fueled by factors such as the Hong Kong unrest and fears of an Argentine debt default “is not likely to change in a single day,” Ghali added.
“Although gold prices look like they are overshooting, it has not been a good idea in the past to bet that the runaway train is going to come to a halt,” TD Securities’ Ghali said.
Elsewhere, silver was up 0.1% at $17.23 per ounce.
Platinum was down 0.2% at $838.78 an ounce and palladium rose 1.6% to $1,446.72 an ounce.—Reuters
