Gold prices edged up early on
Thursday after hitting a near four-month high in the previous session, on a
weaker dollar and as a rally in equities ran out of steam.
Fundamentals
Spot gold was up 0.1 per cent at
$1,318.49 an ounce by 0048 GMT. Prices hit a near four-month high at $1,326.56
an ounce on Wednesday.
US gold futures were little
changed at $1,319 an ounce.
Gold prices on Wednesday reversed
their losses and rose over 1 per cent as the dollar swooned after a report that
Chinese officials had recommended slowing or halting purchases of US Treasury
securities.
Officials reviewing China's
foreign-exchange holdings have recommended slowing or halting purchases of US
Treasuries, Bloomberg News reported on Wednesday, citing people familiar with
the matter.
The US dollar fell to a more than
six-week low against the Japanese yen and weakened against a basket of major
currencies on Wednesday after the report. It was mostly unchanged at 92.320 on
Thursday.
The yen has been buoyed this week
after a cut in the Bank of Japan's bond buying on Tuesday fuelled speculation
that the central bank could eventually seek to exit from its stimulus later
this year, following the footsteps of other major central banks.
Holdings of SPDR Gold Trust , the
world's largest gold-backed exchange-traded fund, fell 0.35 per cent to 828.96
tonnes on Wednesday from Tuesday.
UBS on Wednesday said that its
gold forecast for 2018 year-end stands at $1,325 per ounce.
The class action brought by
thousands of mineworkers who contracted lung diseases while working for South
African gold miners has been postponed because the parties are close to a
settlement, lawyers for the companies said on Wednesday.
Read more at:
Source: Economictimes
No comments:
Post a Comment