Gold stays firm
LONDON: Gold sat tight in a narrow band on Friday as the market struggled to crack resistance at $428 per ounce, but currency moves and the Iraqi elections were expected to spark volatility in coming sessions, dealers said.
Support for bullion could arrive later as the dollar may feel pressure after US GDP data is released. Safe haven purchases could also be on the cards, with investors alert to any escalation of violence around the Sunday elections. Spot gold stood at $425.60/426.40 per troy ounce by 1200 GMT from $425.70/426.50 late in New York on Thursday.
“The market is looking very quiet so far — tracking what the euro does — I think most people are waiting for the US data before deciding on any major moves,” one dealer said.
Major currencies stuck to tight ranges as investors waited to see how Group of Seven and key emerging nations meetings next week would pressure China and other Asian countries to let their currencies rise. The euro was steady, near the middle of recent ranges against the dollar at $1.3033.
A stronger euro versus the dollar makes gold more attractive to non-US investors. But European policy makers recently urged Asian countries, especially China, to let their currencies rise to share the burden of the dollar’s three year decline.
HSBC metals analyst Alan Williamson said he expected little policy change out of the G7 gathering. “This is likely to refocus attention on the dollar/euro which should come under renewed pressure once again,” he said in a daily report. Silver softened to $6.79/6.81 from $6.78/6.81 in New York on Thursday.
Platinum was flat at $865.00/870.00, while palladium eased to 187.00/192.00 from $188.00/193.00. —Reuters