Gold slipped on lower oil prices and the prospect of a firmer US dollar ahead of a key data release on Monday, analysts said. Bullion, which was quoted at $782.60/783.40 per ounce at 1047 GMT, down 90 cents from its late quote in New York on Friday, has lost around 7 percent since last month's ascent to its highest in almost three decades.
"If you think the dollar has fallen as low as it's going to go against the euro, and that oil has already peaked for this year, you're not going to be strong on gold, analyst David Thurtell at BNP Paribas said.
In early November, gold traded up to $845.40, a 28-year peak, helped in part by investors buying the precious metal for its "safe haven" appeal in times of economic uncertainty, often characterised by a weak US dollar and high oil prices.
Last week, the dollar rose more than 1 percent against a basket of currencies after the US central bank cemented expectations of interest rate cuts this year and next, which boosted confidence in US asset prices, and in turn the dollar.
Crude oil, which last month traded within a whisker of $100 per barrel, was below $88 by 1043 GMT on Monday, and producer group Opec may announce an output increase at a meeting this week. Investors were unlikely to make big moves ahead of a data release from the Institute of Supply Management at 1500 GMT, which could shed light on US economic activity in November, and in turn affect the dollar, analysts said.
"The ISM numbers out today will be significant, they will give an idea about where manufacturing is heading in the US," BNP's Thurtell said.
Technically, gold was supported at $780, analysts at Standard Bank said. "A break lower could see gold fall towards $775 and $767," the bank said in a report. Platinum rose to $1,446/1,451 an ounce from $1,438/1,442 in New York, aided supply worries over a strike about safety in main producer South Africa, scheduled for December 4.
Three mineworkers died in separate accidents on Saturday, the country's biggest mining union said. Palladium slipped to $346/349 an ounce from $347/351, and silver was down at $13.83/13.88 per ounce from $13.96/14.01 late in New York.
Comments
Comments are closed.