Gold prices held broadly steady in Asia on Friday after dipping the session before, drawing little support from global political tensions and turbulence in currency markets.
Academics at Birmingham University voted today to boycott its new campus in Dubai in protest at the jailing of…352 Views | the publication reaches you by | Dubai Today
Spot gold was flat at $1,212.12 an ounce at 0321 GMT, having lost 0.1 per cent on Thursday.
“We’re looking for a direction in the US dollar to really dictate price action (in gold) today,” ANZ analyst Daniel Hynes said, adding geopolitical issues around, in emerging markets in particular, were unlikely to provide a boost to prices.
The US dollar, in which gold is priced, was down about 0.2 per cent at 110.90 yen. The greenback, however, hovered just short of a 13-month high against a basket of peers as European currencies such as the pound and euro continued to lose traction.
Meanwhile, fresh US sanctions against Moscow drove down Russia’s rouble to a near two-year low, while the Turkish lira plumbed a record low in the wake of a diplomatic rift with the United States.
Gold prices, which can gain during uncertainty, have largely failed to benefit from rising geopolitical tensions this year, as investors have chosen the safety of the dollar over the precious metal.
Also adding pressure on gold were expectations for higher interest rates in the United States, where the Federal Reserve is expected to raise benchmark lending rates for the third time this year next month.
The US economy is performing “very well” with continued growth clearing the way for one or two more interest rate hikes in 2018, Chicago Federal Reserve Bank President Charles Evans said on Thursday in an interview in which he dismissed earlier worries about weak inflation.
Higher US. rates tend to boost the dollar and Treasury yields, adding pressure on greenback-denominated, non-yielding bullion.
Spot gold looks neutral in a range of $1,206-$1,220 per ounce, and an escape could suggest a direction, Reuters technicals analyst Wang Tao said.
In other metals, silver edged up 0.1 per cent to $15.42 an ounce. Platinum was up 0.3 per cent at $833.10, while palladium was 0.4 per cent lower at 903.75.
Do you have information you want to reach our readers?
The global freelancing market is set to grow $20bn by 2020. Where does the market stand here in…