📈 Fed's first cut since 2020: Time to buy the dip? See Tech-focused stock picksUnlock AI Picks

PRECIOUS-Gold steadies as dollar, stocks pull back; Fed minutes in focus

Published 05/22/2019, 09:50 PM
PRECIOUS-Gold steadies as dollar, stocks pull back; Fed minutes in focus
XAU/USD
-
XAG/USD
-
GC
-
SI
-
GLD
-
DXY
-

* Minutes of U.S. Fed meeting due at 1800 GMT
* SPDR Gold holdings rise 0.4% on Tuesday
* Gold's fall below $1,264/oz could lead towards $1,244 -
analyst
* Platinum dips to three-month low

(Adds comments, updates prices)
By Brijesh Patel
May 22 (Reuters) - Gold steadied on Wednesday, edging off a
two-week low touched in the previous session, as the dollar
retreated and equity markets fell on fresh trade fears ahead of
the U.S. Federal Reserve's release of minutes from its last
meeting.
Spot gold XAU= inched up 0.1% to $1,275.65 per ounce as of
1324 GMT, having fallen to its lowest level since May 3 on
Tuesday at $1,268.97.
U.S. gold futures GCcv1 were 0.2% higher at $1,275.40 an
ounce.
"Today's gold move is largely a reflection of a slight
weakness in the dollar and lower equity markets supporting
prices," ING analyst Warren Patterson said.
"(However), going forward gold movement will largely be
dictated by what happens with the dollar and escalation in trade
war between the United States and China."
The dollar index .DXY was down 0.1% after hitting a near
one-month peak on Tuesday, boosted by higher U.S. Treasury
yields after Washington temporarily eased trade restrictions
imposed last week on Chinese telecom equipment firm
Huawei HWT.UL . USD/ US/
Global stocks pulled back as relief over the Huawei move
evaporated on reports that the White House was considering
further sanctions on Chinese video surveillance firm Hikvision.
MKTS/GLOB Gold is now more than 5% below its late February peak of
$1,346.73 per ounce.
Markets are looking to the release at 1800 GMT of the
minutes of the U.S. Federal Reserve's latest meeting that might
give more clues on the interest rate outlook.
"When the Fed minutes are released there will be a knee-jerk
reaction on the dollar, which in turn will impact gold," said
David Govett, head of precious metals at Marex Spectron.
"But in the long-term, the impact will be very little
because the statement is expected to be very neutral."
Earlier this week, Fed Chair Jerome Powell said it would be
premature to make a judgement about the impact of trade and
tariffs on monetary policy. Meanwhile, holdings of SPDR Gold Trust GLD , the world's
largest gold-backed exchange-traded fund, rose 0.4% to 739.69
tonnes on Tuesday. GOL/ETF
However, holdings have declined nearly 7% so far this year,
indicating subdued investor interest in bullion.
On the technical side, spot gold XAU= may now test support
at $1,264 per ounce, a break below which could open the way
towards $1,244, according to Reuters technical analyst Wang Tao.
L4N22Y0WQ
Among other precious metals, silver XAG= was up 0.1% at
$14.46 per ounce, while palladium XPD= lost 0.9% to $1,307.35.
Platinum XPT= slipped 1.3% to $803.10 an ounce, having
touched its lowest since Feb. 18 at $800.50 earlier on
Wednesday.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
TECH/C https://tmsnrt.rs/2WX7YfG
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.