BENGALURU: Gold edged lower on Monday as the dollar steadied, but the metal held close to $1,300 as investors adopted a cautious approach while awaiting developments on the US-China trade front and Federal Reserve policy.
Spot gold eased 0.2 per cent to $1,300.07 per ounce as of 1318 GMT, having risen earlier in the session to $1,304.42, its highest since June 14, 2018. The metal broke above $1,300 in the last session after failing to do so multiple times before.
US gold futures ticked up 0.1pc to $1,299.10 per ounce.
“With the news over the weekend that at least on a temporary basis, we have an end to the shutdown in the US, you’ d expect gold prices to be a little bit softer,” Julius Baer analyst Carsten Menke said.
Gold is hovering around the much-discussed $1,300 psychological resistance, tracking back from which may kindle some jitters among investors, Capital Economics analyst Ross Strachan said.
“A number of investors will find this an opportune time to get in before the next move higher, likely, given the state of the global economy ... we continue to expect prices to rise towards $1,350,” Capital Economics’ Strachan said.
Gold is likely to break to $1,311 as it has cleared resistance at $1,299, Reuters analyst Wang Tao said.
Palladium fell 0.8pc to $1,349.60 per ounce. Prices hit a record high of $1,434.50 on January 17. Silver fell 0.6pc to $15.65 per ounce, while platinum slipped 0.2pc to $811.80.
Published in Dawn, January 29th, 2019
