London: Gold eased on Wednesday after a three-day winning streak as the
dollar and equities strengthened, but prices held above $1,200 an ounce
and near their highest in three weeks on worries about Greece’s
political situation.
dollar and equities strengthened, but prices held above $1,200 an ounce
and near their highest in three weeks on worries about Greece’s
political situation.
Spot gold fell 0.5 per cent to $1,212.16 an ounce by 1304 GMT, after
jumping to its highest since Dec. 15 at $1,222.40 in the previous
session as equities fell on concerns over Greece’s future in the
Eurozone.
jumping to its highest since Dec. 15 at $1,222.40 in the previous
session as equities fell on concerns over Greece’s future in the
Eurozone.
US gold futures for delivery in February fell 0.5 per cent to $1,213.10 an ounce.
Gold’s near-term resistance for the closing price is expected at
$1,220, while a close above that level would shift the focus to further
gains, with a target of $1,250, technical analysts at ScotiaMocatta
said.
Prices recovered above $1,200 as all these worries about Greece’s
Gold slips on strong dollar, holds above $1,200oz | GulfNews.com$1,220, while a close above that level would shift the focus to further
gains, with a target of $1,250, technical analysts at ScotiaMocatta
said.
Prices recovered above $1,200 as all these worries about Greece’s
future in the Eurozone increased some safe-haven bids, but unless the
situation worsens, this should just give temporary support to gold,”
Julius Baer analyst Carsten Menke said.
situation worsens, this should just give temporary support to gold,”
Julius Baer analyst Carsten Menke said.
The longer-term outlook remains one of progressive economic recovering
in the United States leading to a first interest rate hike in the
second half of the year.” The dollar rose 0.5 per cent against a basket
of major currencies, trading close to a nine-year peak and making
dollar-denominated gold more expensive for holders of other currencies.
in the United States leading to a first interest rate hike in the
second half of the year.” The dollar rose 0.5 per cent against a basket
of major currencies, trading close to a nine-year peak and making
dollar-denominated gold more expensive for holders of other currencies.
Investors waited for the US Federal Reserve’s December meeting minutes,
which should give markets some clues as to the timing of interest rate
rises.
which should give markets some clues as to the timing of interest rate
rises.
Gold has benefited from years of increased central bank liquidity and a
low interest rates environment, while higher US interest rates would
encourage investors to put money into interest-bearing assets like
stocks and bonds.
low interest rates environment, while higher US interest rates would
encourage investors to put money into interest-bearing assets like
stocks and bonds.
The metal was also undermined by an oil price drop, which reduces
gold’s appeal as a hedge against oil-led inflation, and recovering
European stocks, which halted a three-day fall after a
bigger-than-expected drop in Eurozone inflation was seen as likely to
trigger a bond-buying scheme by the European Central Bank.
gold’s appeal as a hedge against oil-led inflation, and recovering
European stocks, which halted a three-day fall after a
bigger-than-expected drop in Eurozone inflation was seen as likely to
trigger a bond-buying scheme by the European Central Bank.
Meanwhile, increasing speculation that Greece might exit the Eurozone
if a left-wing party that wants to cancel austerity measures wins the
Jan. 25 elections could lift gold’s demand from investors looking for
protection, traders said.
if a left-wing party that wants to cancel austerity measures wins the
Jan. 25 elections could lift gold’s demand from investors looking for
protection, traders said.
The metal had regained the important $1,200 level for the first time in
three weeks on Tuesday, also boosted by softer-than-expected US
economic data, which added to its appeal as an alternative investment.
three weeks on Tuesday, also boosted by softer-than-expected US
economic data, which added to its appeal as an alternative investment.
Silver fell 1.3 per cent to $16.31 an ounce, while platinum was up 0.1
per cent at $1,213.99 an ounce and palladium was down 0.9 per cent to
$793.97 an ounce.
per cent at $1,213.99 an ounce and palladium was down 0.9 per cent to
$793.97 an ounce.
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