BackGlobal gold prices below 3-week peak as dollar recovers, Trump policy in focus
Spot gold prices were down 0.2% at $1,246.51 per ounce at 9.23am. On Wednesday, the prices were strongest since 28 February at $1,251.26
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Bengaluru: Gold prices on Thursday held below a three-week peak hit in the prior session, as the dollar recovered from seven-week lows and markets looked to see if US President Donald Trump could push through a healthcare bill.
Spot gold was down 0.2% at $1,246.51 per ounce at 9.23am. On Wednesday, it touched its strongest since 28 February at $1,251.26.
US gold futures were down 0.3% at $1,246.5.
“There is a strong technical resistance at $1,250 and that seems to have been felt strongly at this juncture," OCBC analyst Barnabas Gan said.
Spot gold may retrace to a support at $1,237 per ounce, following its failure to break a resistance zone of $1,247-$1,254, according to Reuters technical analyst Wang Tao.
However, Gan pointed to the impact of sustained political issues in Europe and the United States.
“This kind of uncertainty does lift gold prices," he said.
The immediate focus is on whether Trump can gather enough support in a vote as early as Thursday to pass a bill to roll back Obamacare, a first major test of his legislative ability and whether he can keep his promises to business.
Trump and House of Representatives leaders were pushing on Wednesday for votes for their plan, and said they were making progress in their efforts to win over conservative Republicans who have demanded changes to the legislation.
However, a rough ride for the healthcare plan could affect Trump’s efforts to cut taxes and boost infrastructure, and drive more investors into gold as a safe-haven investment if stock markets fall, analysts and traders said.
The dollar index, which measures the greenback against a basket of currencies, was up 0.1% at 99.782. It fell to a near seven-week low of 99.547 on Wednesday.
Spot silver rose 0.2% to $17.53.
Platinum was up 0.1% to $959.49 per ounce, while palladium edged up 0.1% to $787. The metal hit over one-month highs at $794.30 in the prior session. Reuters
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