PRECIOUS-Gold slips as share markets gain ahead of Fed meeting By Reuters

© Reuters. PRECIOUS-Gold slips as share markets gain ahead of Fed meeting

* Markets await outcome of U.S. Fed meeting on March 19-20

* Gold specs trim net longs for a third straight week

* SPDR gold holdings slip on Friday (Adds comments, updates prices)

By Swati Verma

March 18 (Reuters) – Gold prices slipped on Monday, as gains in the equity markets dented the appeal of the precious metal ahead of a U.S. Federal Reserve policy meeting this week.

Spot gold was down 0.2 percent at $1,299.13 per ounce by 0443 GMT. U.S. GCcv1 fell 0.3 percent to $1,299 an ounce.

The U.S. Fed will begin its meeting on interest rates on Tuesday, which ends with a news conference on Wednesday.

“This could be an important meeting. We’ve seen the Fed taking a much more dovish stance at the beginning of this year and particularly given the run of stronger numbers we have seen,” said Michael McCarthy, chief market strategist, CMC Markets.

“We might see Fed moving back on their dovishness and keep a balanced risk approach and if that is the case we could see a strengthening U.S. dollar and that could put pressure on the gold prices.”

Gold, which offers no yield of its own, tends to fall out of favour among investors when interest rates rise.

Investor sentiment towards gold is reflected in the reduction in net longs by speculators and a fall in holdings of SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, on Friday. CFTC/ GOL/ETF

Dealers trimmed their net long position in COMEX gold in the week to March 12 for a third straight week, the U.S. Commodity Futures Trading Commission (CFTC) said on Friday.

“Gold prices are at a key level right now, $1,290 and $1,310 are the key support and resistance levels,” McCarthy said. “One of the most important drivers for gold is the U.S. dollar strength and the dollar is in turn beholding to the U.S.-China trade negotiations.”

Investors since last year have favoured the dollar as a safe haven against the U.S.-China trade war. Markets have been on the edge as a resolution to the dispute is taking longer than expected. pressure to bullion were gains in the equity markets. MKTS/GLOB

“The precious metal though facing headwinds from riskier assets continues to demonstrate strong support amid heightened geopolitical uncertainties in the current term,” Phillip Futures said in a note.

Investors are closely watching developments around the Britain’s departure from the European Union. British Prime Minister Theresa May’s government was scrambling on Sunday to get support in parliament for her Brexit deal at the third time of asking. other precious metals, palladium fell 0.5 percent to $1,551.94 per ounce, having hit record peak of $1,567.50 in the last session.

Spot silver was steady at $15.28 an ounce, while platinum was down 0.1 percent at $827.36.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source link

We will be happy to hear your thoughts

Leave a reply