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Gold weakens in Asia

Gold weakens in Asia

SINGAPORE: Gold prices weakened after touching a more than two-week high on Thursday, weighed down by profit-taking amid political turmoil in the United States.

The yellow metal rose about 2 percent on Wednesday in its biggest one-day percentage gain since June last year, as pressure on US President Donald Trump deepened following reports that he tried to interfere with a federal investigation.

That came after a turbulent week when Trump fired FBI Director James Comey and discussed sensitive national security information with Russia’s foreign minister, causing investors to question whether Trump can push through tax cuts and deregulation.

“We are seeing some squaring off probably from Asian traders and perhaps just a bit correction from the moves overnight,” said Jeffrey Halley, senior market analyst at OANDA.

Spot gold was down 0.2 percent at $1,258.02 per ounce by 0805 GMT after earlier touching its strongest since May 1 at $1,263.02. The yellow metal settled higher in the five previous sessions.

US gold futures were nearly flat at $1,258.40 an ounce.

Spot gold may retrace moderately to a support at $1,252 per ounce, before retesting a resistance at $1,264, according to Reuters technical analyst Wang Tao.—Reuters

Gold rises in NY

NEW YORK: Gold rose to a two-week high on Wednesday as political turmoil in the United States reduced expectations of aggressive interest rate rises this year, pushed down US bond yields and drove the dollar to its lowest in six months.

Lower yields reduce the opportunity cost of holding non-yielding gold, while a weaker dollar makes bullion cheaper for non-US investors. Higher interest rates would push yields up and likely boost the dollar.

Spot gold rose for a fifth day and was up 1.8 percent at $1,258.28 an ounce by 2:40 p.m. EDT (1840 GMT), after hitting $1.260.20, the highest since May 1. It was on track for its biggest one-day gain since June 2016.

US gold futures settled up 1.8 percent at $1,258.70.

“Downward movement in yields and the dollar have given support to gold,” ABN AMRO analyst Georgette Boele said. “And on top of this you get political uncertainty which is denting the dollar.”

US President Donald Trump is under pressure to explain whether he tried to interfere with a federal investigation after reports that he asked then-FBI Director James Comey to end a probe into Trump’s former national security adviser, Michael Flynn.

Silver was up 0.6 percent at $16.92 an ounce and platinum was 0.7 percent higher at $944 an ounce. Palladium was down 2.2 percent at $776.22.—Reuters

Pakistan Mercantile Exchange - PMEXGold eases in Europe

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