November 01, 2018
PRECIOUS-Gold prices recover from 3-week low on softer dollar
(Reuters) - Gold recovered on Thursday from a three-week low hit in the previous session as the recent fall in the metal prices and an easing dollar from multi-month highs induced some bids.
Spot gold was 0.3 percent higher at $1,217.66 per ounce at 0424 GMT, after falling for three sessions in a row. Gold touched its lowest since Oct. 11 at $1,211.52 per ounce on Wednesday.
U.S. gold futures were up 0.4 percent at $1,219.2 an ounce.
"Bargain hunters are buying on the dips. The dollar being slightly off is also helping," a Singapore-based trader said.
The dollar index, which measures the greenback against a basket of six major currencies, was down 0.3 percent after hitting a 16-month high in the previous session.
"Yesterday, a stronger dollar kept gold under pressure. The market was overdone and gold prices fell to about $1,211 ... There is some buying interest in the Asian markets at the lower levels," said Peter Fung, head of dealing at Wing Fung Precious Metals in Hong Kong.
A stronger dollar makes dollar-denominated bullion more expensive for users of other currencies.
In the wider markets, Asian stocks rose as bruised investor sentiment got some relief from another robust Wall Street session.
"The bearish correction in global financial markets has waned off though traders remain guarded on riskier assets for the current term," said Benjamin Lu, a commodities analyst with Phillip Futures, adding that investors will bide time as the U.S. sanctions on Iran and the U.S. mid-term elections approach next week.
"Gold prices look poised to range broadly as investors balance between market uncertainties and a gradual but positive pick up in global equities," Lu said.
Gold prices have slipped about 11 percent from their April peak as investors turned to the dollar as a safe-haven with the trade war unfolding alongside higher U.S. interest rates.
Meanwhile, White House economic adviser Larry Kudlow said on Wednesday U.S. President Donald Trump has not "set in stone" any decisions on escalating tariffs on Chinese goods and may withdraw some duties if there are promising policy discussions with China.
Spot gold may bounce moderately to $1,224 per ounce before retesting a support at $1,211, said Reuters technical analyst Wang Tao.
Holdings in SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.12 percent to 754.06 tonnes on Wednesday.
Among other precious metals, silver rose 0.3 percent to $14.27 per ounce.
Platinum climbed 0.9 percent to $843.10 per ounce, while palladium rose 0.4 percent to $1,082.35.