Gold momentarily perked up in Europe after US GDP data caused the dollar to wobble, but resistance around $428 per ounce kept the metal in a well-trod range, traders said. Preliminary US GDP figures for the fourth quarter showed growth of 3.1 percent, against a forecast 3.5 percent. The euro rose to around $1.3070 before falling away to under $1.3000.
"After the data came out it ran up towards $428.00 in line with the weaker dollar. However, it faced good selling and that was it again. We continue to see the metal trading within its familiar range, a trader said.
Spot gold fell back to $424.70/425.50 per troy ounce by 1550 GMT from $425.70/426.50 late in New York on Thursday.
Traders said that the downside is likely to be limited, with investors alert to any escalation of violence around the Sunday elections in Iraq.
Also on the horizon there are Group of Seven and key emerging nations meetings next week, which may pressure China and other Asian countries to let their currencies rise.
A stronger euro versus the dollar makes gold more attractive to non-US investors. But European policy makers recently urged Asian countries, especially China, to let their currencies rise to share the burden of the dollar's three-year decline.
"We think that it (gold) needs a positive impulse from the currency side to bring it significantly higher, with $431 the next resistance in case $428 fails to deliver sufficient resistance," the trader said.
Elsewhere, silver softened to $6.75/6.77 from $6.78/6.81 in New York on Thursday. Platinum was at $868.00/872.00, against $865.00/870.00, while palladium eased to 187.00/192.00 from $188.00/193.00.
Comments
Comments are closed.