Jun 29, 2018

Gold on track for worst month since Nov. 2016 I Gold Price I CNBC


Gold on track for worst month since Nov. 2016


gold bars.jpg AP
Gold prices recovered on Friday from six-month lows as speculators took profits amid a weaker dollar, but some analysts warned that more losses were likely.
Spot gold added 0.45 percent to $1,253.55 an ounce. On Thursday, it touched $1,245.32, its lowest since Dec. 13, 2017. U.S. gold futures for August delivery settled up $3.50 at $1,254.50.
"We're receiving only a couple of dollars bounce on the back of a pretty decent weakening of the dollar, so gold's not showing any signs of strength," said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. "The shorts are still in control and the momentum is negative. The dollar and U.S. treasuries have taken over the role of safe haven this month and as long as the trade war is creating uncertainty then that will probably prevail."
Gold was on track for a third straight weekly decline, having slipped 1.4 percent so far this week. Spot gold was down about 3.6 percent for the month, heading for its biggest monthly drop since November 2016.
The euro jumped more than a half cent after European Union leaders reached an agreement on migration. A stronger euro potentially boosts demand for gold by making dollar-priced bullion cheaper for European investors.
The dollar index against a basket of six major currencies slipped 0.8 percent, having risen to about a one-year high on Thursday.
"There is feeling in some quarters that we may be nearing the bottom of this recent downturn (in gold)," MKS PAMP Group trader Tim Brown wrote in a note.
Support-wise, gold appears fairly well bid around $1,245-$1,248 and there should be support at $1,237 and below that, Brown said.
Hansen said the downtrend would likely accelerate unless gold held above multiple layers of support slightly below $1,240. "If that area breaks, the shorts and momentum sellers will have a field day."
In other precious metals, silver gained 1 percent to $16.12. It was heading for its biggest weekly decline since the week ended April 27, down 2 percent for the week. Palladium rose 0.86 percent to $952.80.
Platinum was up 0.68 percent at $853.30. It hit its lowest since January 2016 at $837.30 earlier in the session. It was down 9 percent for the quarter, its worst since the quarter ended December 2016.

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