LONDON: Gold headed lower on Tuesday, weighed down by a stronger dollar, and may re-test a seven-month low after a failed attempt to break higher in the previous session.
Spot gold was down 0.3 per cent at $1,253.36 an ounce by 1250 GMT, after retreating from its highest since June 26 at $1,265.87 in the previous session. US gold futures for August delivery slipped 0.4pc to $1,254.10 an ounce.
“If this dollar strength continues, we could see another test of $1,240, the lows from last week and mid-December, a crucial technical level,” said Carsten Fritsch, commodity analyst at Commerzbank in Frankfurt. Bullion has been in a downtrend since touching $1,365.23 on April 11, the strongest in nearly three months.
Investors were also on the sidelines awaiting developments on the trade war between China and the United States, said Dick Poon, general manager, Heraeus Metals Hong Kong Ltd.
Last week, the world’s top two economies slapped tit-for-tat duties on $34 billion worth of each other’s imports. “Geopolitical issues, such as Britain’s confused exit from the European
Union and US President Trump’s assertion that China was impeding North Korean progress on denuclearisation, have provided some support for gold,” said Sharma.
In other precious metals, silver fell 0.1pc to $16.06 an ounce. Platinum slipped 0.9pc to $839.25 per ounce and palladium shed 1.5pc to $946.50 an ounce.
Published in Dawn, July 11th, 2018