Black Friday is Now! Don’t miss out on up to 60% OFF InvestingProCLAIM SALE

PRECIOUS-Gold dips as stock markets recover, U.S. dollar rises

Published 08/09/2019, 01:53 AM
PRECIOUS-Gold dips as stock markets recover, U.S. dollar rises
XAU/USD
-
XAG/USD
-
GC
-
SI
-
GLD
-
US10YT=X
-
US30YT=X
-
DXY
-

* SPDR Gold holdings rise 7.3% so far this year
* Silver slips from one-year high

(Updates prices)
By K. Sathya Narayanan
Aug 8 (Reuters) - Gold edged down on Thursday as equities
markets recovered, the U.S. dollar strengthened and traders
locked in profits after bullion surged past $1,500 to a more
than six-year high in the previous session.
Spot gold XAU= was down 0.2% at $1,498.45 per ounce as of
01:41 p.m. EDT (1741 GMT). U.S. gold futures GCcv1 settled
down 0.7% at $1,509.50 per ounce.
The metal has risen more than 16% so far this year, and
about $100 over the past week, in a run propelled by trade
tensions between Washington and Beijing, falling bond yields and
an increasingly dovish shift in policy by global central banks.
"We got a little bit of a relief rally going on in the
equities market here ... so, gold futures are pulling back a
little bit after an incredible run up," Phillip Streible, senior
commodities strategist at RJO Futures, said, adding the bull run
in gold is not over and the market is seeing a small correction.
Stock markets enjoyed a tentative recovery on Thursday, as
a steadier yuan restored some calm to markets following a stormy
few days that sent investors scrambling for safety. MKTS/GLOB
Yields on the 10-year U.S. Treasury note US10YT=RR
recovered somewhat, rising 6.2 basis points to 1.753%. US/
Overnight, yields on U.S. 30-year bonds US30YT=RR fell as
low as 2.123%, not far from a record low of 2.089% set in 2016.

The U.S. dollar .DXY was slightly up against a basket of
currencies, making greenback-denominated gold costlier for
investors holding other currencies. USD/
However, supporting bullion were "expectations that the U.S.
Federal Reserve is going to be more aggressive about rate cuts.
We have already seen four major central banks cut rates," RJO
Futures' Streible said.
On Thursday, the Philippine central bank cut its benchmark
lending rates, following similar moves by New Zealand, India and
Thailand, among others. Following the Fed's rate cut last week, interest rates
futures FEDWATCH suggest traders are betting the central bank
will cut rates three more times by the year-end to avert a
recession. On the technical front, spot gold may gain further to
$1,524, as it has cleared a resistance at $1,497 per ounce,
according to Reuters technical analyst Wang Tao. Reflecting investors appetite for bullion, holdings
HLDSPDRGT=XAU in the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust GLD , have risen 7.3% so
far this year. GOL/ETF
Silver XAG= dipped 0.9% to $16.95 per ounce, after hitting
a more than one-year high in the previous session.
Platinum XPT= was down 0.1% to $860.81, while palladium
XPD= rose 0.3% to $1,418.64 an ounce.

<^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^
TECH/C https://tmsnrt.rs/2Ytuly6
^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>

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.