LONDON: A slightly firmer dollar weighed on gold on Thursday, but prices were expected to continue to rebound in coming weeks from steep losses earlier this month.

Spot gold was down 0.2 per cent at $1,204.05 an ounce at 1230 GMT, while US gold futures edged down 0.1pc to $1,210.70 an ounce. “We have become more positive for gold. Although we have quite a high conviction for higher prices in the medium and long term, we see a little bit of a challenge in the short term as long as the dollar remains strong,” said analyst Carsten Menke at Julius Baer in Zurich.

“You have to be cautious if you want to see higher gold prices, but we believe the bottom is here. From an investment point of view, it’s really about averaging into the market, not just doing it all at once.” The dollar index was marginally firmer, making gold more expensive for buyers using other currencies, after the greenback hit a four-week low of 94.434 on Tuesday.

Spot silver fell 0.4pc to $14.66 an ounce. Platinum lost 0.7pc at $790.49 while palladium gained 1.5pc to $979.50 after hitting its highest since June 19 at $983.75. The premium of palladium over platinum has increased to nearly $190 per ounce, the highest since March 2001.

Published in Dawn, August 31st, 2018