September 27, 2019
Gold set for weekly loss as dollar firms on safe haven bid
(Reuters) - Gold prices were little changed on Friday, but the metal was on track for a third weekly fall in four as a strong dollar offset positive impacts of political and trade worries.
Spot gold was steady at $1,506.43 per ounce, as of 0426 GMT, declining 0.7% for the week after a near 2% gain last week. U.S. gold futures were 0.1% lower at $1,513.7 per ounce.
"Gold is smack bang in the middle of its longer-term $1,480.00 to $1,530.00 range," PANDA analyst Jeffrey Halley said in a note.
"It looks set to remain anchored there for the session as markets await more big picture clarity."
The greenback held near multi-week highs against major currencies as heightened risks from political tensions to the Sino-U.S. trade war increased its safe-haven appeal. Asian shares were on course for a second straight weekly loss.
A whistle-blower report released on Thursday said U.S. President Donald Trump not only abused his office in attempting to solicit Ukraine's interference in the 2020 U.S. election for his political benefit, but that the White House tried to "lock down" evidence about that conduct.
This added to the uncertainties around the global growth outlook amid a prolonged U.S.-China trade spat.
"Gold prices are steady this morning even though there are a lot of (supportive) news flowing around," said Margaret Yang Yan, a market analyst at CMC Markets, adding that the dollar's
strength capped the upside.
"If the global economic situation does not improve, we may see central banks around the world cutting down interest rates."
Meanwhile, investors were cautious on mixed signals from China and the United States on their tariff dispute, which has helped the bullion gain about 17% so far this year.
China's top diplomat said on Thursday Beijing was willing to buy more U.S. products, and that talks would yield results if both sides "take more enthusiastic measures" to show goodwill and reduce "pessimistic language."
But reports saying Washington is unlikely to allow American firms to supply China's Huawei Technologies undermined hopes of a complete deal between the countries.
Spot gold may test a support at $1,488 per ounce, a break below which could cause a fall towards $1,446, according to Wang Tao, a Reuters market analyst for commodities and energy technicals.
Elsewhere, silver rose 0.2% to $17.83 an ounce, platinum was up 0.2% at $931.75 and palladium was steady at $1,668.28.