Gold dipped in Europe on Monday, with the market's initial drive up stalled by the euro easing against the dollar, although dealers were still optimistic that prices would eventually surpass last week's three-month high at $408.70 an ounce.
Spot gold fell to $406.20/$406.70 by 1457 GMT, from $407.20/$407.95 quoted in New York late on Friday. Silver trimmed its gains in tendem with gold's fall to $6.48/6.51 from $6.44/$6.46 last quoted in New York.
The dollar traded in narrow ranges after falling to a four-month low earlier against the euro, with bearish sentiment in place ahead of a host of economic numbers this week, including US trade data on Tuesday and producer and consumer prices later in the week.
Dealers said the dollar had felt the pinch due to scaled back expectations for aggressive, dollar-supportive US interest rate rises after a series of softer than expected economic releases.
As weakness in the US currency makes dollar-denominated gold cheaper for non-US investors, dealers said bullion was still poised to target higher levels despite trading lower in the afternoon.
"Gold has come off a bit because the euro has gone a bit wobbly against the dollar, but I'm still looking for gold to get towards $410 as the price has held on to a lot of last week's gains," one dealer said.
"Overall gold should continue to monitor the dollar with concerns of oil driven inflation working in the metal's favour," James Moore of TheBulliondesk.com said in a daily report.
Platinum rose to a near five-week high at $829 an ounce in Asian trade, aided by Japanese-led buying, before falling back slightly as interest faded in European trade.
Platinum stood at $819.00/$824.00, compared with $810.00/$815.00 in New York, while palladium was at $223.00/$228.00, up from $221.50/$227.50 previously.
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