Oct 21, 2019

Commodities | Gold | Gold Price Report: Gold steady as weaker dollar offsets upbeat equities

2-3 minutos - Source: CNBC

GP: Gold Bars And Coins 181129
Canadian maple leafs sit on the faces of one ounce gold coins in London, the United Kingdom, on July 15, 2014.
Chris Ratcliffe | Bloomberg | Getty Images
Gold prices were steady on Monday as U.S. dollar weakness offset gains in equities, while investors awaited further clarity from the U.S. Federal Reserve on interest rates cuts this year.
Spot gold was up 0.1% at $1,490.97 per ounce. U.S. gold futures were steady at 1,494.30.
″... Ultimately the main driver in gold is the U.S. Fed and what they’re doing with the (interest) rates,” Bob Haberkorn, senior market strategist at RJO Futures, said, adding that strong equities markets were limiting any upside.
The dollar was heading for its worst month since January 2018 against an upbeat pound and euro, making greenback denominated bullion cheaper for investors holding other currencies.
Appetite for riskier assets improved on hopes for a resolution to the protracted U.S.-China trade war and Britain avoiding a European Union exit.
“The market has started to price in some sort of a (Brexit) resolution but I don’t think it is as significant for gold as it would be for some currencies like sterling and the euro,” said Daniel Ghali, commodity strategist at TD Securities.
The Fed’s stance after the Federal Open Market Committee meeting, whether they open the door for a further cut or not, would be key for bullion, Ghali said, adding that investors are awaiting more economic data from the U.S.
Meanwhile, hedge funds and money managers cut their bullish positions in COMEX gold and silver contracts in the week to Oct. 15, data showed on Friday.
Elsewhere, silver rose 1.2% to $17.75 per ounce, while platinum was up 0.2% at $890.70.
Deficit hit auto-catalyst metal, palladium gained 0.1% to $1,756.17 an ounce, having hit an all-time high of $1,783.21 last week.
“Sell rates for palladium reached the highest level since January. This suggests the recent rally has been driven by fundamentals, rather than speculative interest,” ANZ Bank said.
“And with the market likely to remain tight for the foreseeable future, we believe there is plenty more upside for (palladium) prices,” ANZ added in a note.

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