iPhone | iPad
Android
Huawei
Art meets sustainability at COP28; another eco wonder is a pavilion made of palm tree waste
KT APPDOWNLOAD
Gold rally slows, vulnerable to profit-taking
LONDON - Gold rose by just $1 on Friday despite a sharp drop in the dollar and firm oil prices, and analysts said the metal was vulnerable to profit-taking due to its failure to hold key levels.
Spot gold XAU was quoted at $676.80/677.80 an ounce by 0950 GMT, versus $675.80/$676.30 late in New York on Thursday. The metal hit a six-week high of $681.30 on Tuesday.
“It’s running out of steam for the time being and there needs to be something else to support it. The dollar is clearly not enough for the moment,” said Stephen Briggs, economist at SG Corporate and Investment Bank.
“There is a risk that if we continue to fail through roughly $680, then there is a risk of disillusion and some liquidation.”
The euro hit a two-year high versus the dollar ahead of a Group of Seven meeting and on expectations of a euro zone rate rise in June. It is now within 1-1/2 cents of a record high set in 2004.
A weaker dollar gives buyers more purchasing power in dollar-denominated gold, which is also often seen as a hedge against oil-led inflation.
Oil topped $64 a barrel, extending a 3 percent gain a day earlier, as traders pondered a series of refinery outages in the United States that drained gasoline stocks as the typically heavy summer driving period approached.
Despite gold’s range-bound trading pattern, analysts said the metal would set new highs further forward.
“We continue to believe that a weakening dollar will lend further support to gold prices given the historical inverse relationship between the two assets,” Goldman Sachs said.
“We therefore continue to expect gold prices to rise to $750 by year end,” it said in a report.
Deutsche Bank saw gold prices rising to $740 in the long run.
In other metals, palladium XPD traded just below an 11-month high of $372 an ounce hit on Thursday. Spot XPD was quoted at $370/375, against $367.50/$372.50 in the US market.
“It’s purely speculative and I don’t think the fundamentals justify the move,” Briggs said, adding palladium attracted good buying on a market perception that it had gained less than other metals in recent weeks.
Platinum XPT was down $1 at $1,264/$1,267 an ounce, while silver XAG was at $13.85/13.88 an ounce, versus $13.84/13.89.
More news from
According to the lawsuit, the incident happened on a September 2 flight from Charlotte to Boston
The court rejects the former president's claim that he is immune to the lawsuits
Here's a step-by-step guide to booking an appointment ahead of your next European trip
Motorcycle users are advised to wear a helmet, wear protective clothing and ensure the safety of the bike
The project is part of the city's efforts to increase fish stocks, support sustainable fishing and contribute to boosting food security
The 15-time major champion, who has not played since having ankle surgery in April, shot a three-over-par 75
After almost a year out with injury the former world number one to return to competitive tennis in January