Friday 29 March 2024
 
»
 
»
Story

Gold up, but set for weekly fall as US rate bets buoy dollar

LONDON, April 10, 2015

Gold rose on Friday as chart levels were broken, but was still heading for its first weekly fall in four, pressured by a stronger dollar and renewed expectations for a US rate hike this year.

Spot gold climbed 0.8 per cent to $1,204.06 an ounce by 1138 GMT. Flat initially, it gained momentum after a break of technical resistance at $1,196 that triggered automatic buy orders.

Bullion was however still down around 0.5 per cent for the week, having pulled back from Monday's seven-week top of $1,224.10 that was triggered by last week's weak US employment report.

US gold for June delivery was up $10.40 an ounce at $1,204.00.

"We saw a technical move this morning that pushed prices above $1,200... but if we see some selling into the rally perhaps we can come back down again," Mitsubishi Corp strategist Jonathan Butler said.

"Looking at the slightly longer-term chart, (prices are) still heading for a weekly fall ... (after) what we heard at the FOMC meeting, very much keeping the door open to a June rate rise."

Gold on Friday shrugged off the impact of a stronger dollar and higher European equities.

But the longer-term outlook is still bearish, traders said, and prices had surrendered gains after Federal Reserve officials suggested a June rate hike could still be in play.

Investors tend to shun gold, which doesn't pay interest, when market expectations point to US interest rates rising.

Gold could drop to a five-year low of $1,100 this year due to the relative health of the US economy compared to Europe and emerging markets, GFMS analysts at Thomson Reuters said.

Gold buying in Asia was slow this week as firmer spot prices turned off buyers, especially in China, and a potentially weak monsoon threatened demand in India.

Premiums for physical gold at the Shanghai Gold Exchange stood at a modest $1-$2 an ounce over the global spot benchmark on Friday.

Spot silver rose 2.6 per cent to $16.52 an ounce, while platinum gained 0.7 per cent to $1,163.10 an ounce and palladium was up one per cent at $767.20 an ounce. - Reuters




Tags: Gold | Dollar | Fall | weekly |

More INTERNATIONAL NEWS Stories

calendarCalendar of Events

Ads