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Apr 11, 2019

Metals Price Closing Report | Gold edges lower but holds near 2-week peak on growth concerns

Tom DiChristopher




RT: Gold bars with hand 170512
Gold eased on Thursday as investors booked some profit from the metal’s strong run this week, but bullion held near a two-week peak supported by concerns over an economic slowdown, as major central banks retained a dovish policy stance.
Spot gold was down 1.30 percent at $1,290.855 per ounce. It touched its highest since March 28 at $1,310.50 on Wednesday.
U.S. gold futures were about 1.50 percent lower at $1,294.2 an ounce. Spot prices have rebounded from a near 10-week low touched last week at $1,280.59.
Gold is being pressured by some profit-taking following the past week’s gains, especially with the climb above $1,300, OANDA senior market analyst Craig Erlam said.
“One of the reasons we are trading around $1,300 levels is the dovish stance of central banks,” he said.
The dollar was little changed against rival currencies, hovering near a two-week low after the U.S. Federal Reserve’s minutes cemented the central bank’s dovish policy stance amid risks of a global economic slowdown.
European Central Bank President Mario Draghi raised the prospect of more support for the struggling euro zone economy on Wednesday if its slowdown persisted, and kept its ultra-easy monetary policy unchanged.
Low interest rates reduce the opportunity cost of holding non-yielding bullion, widely viewed as a safe investment during times of political and economic uncertainty.
World stock markets moved away from six-month highs as investors weighed warning signs over growth from major central banks.
“The yellow metal should see support toward $1,300-$1,305, while a consolidated break through $1,310 should see further interest,” MKS traders said in a note.
Traders are also closely following developments in Brexit after European Union leaders gave Britain six more months to leave the bloc.
Also on investors’ radar is U.S.-China trade, with Washington and Beijing having largely agreed on a mechanism to police any agreement they reach, including establishing “enforcement offices,” U.S. Treasury Secretary Steven Mnuchin said. Talks resume on Thursday.
Spot platinum was flat at $890.13 per ounce.
Palladium was down 1.99 percent at $1,359.505 per ounce, while silver slipped 1.98 percent to $14.90.

Source: CNBC

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