Gold edged up on Monday, adding to sharp gains from the previous trading session, as weakness in the dollar and equities helped the metal recoup some losses from a US interest rate hike last week. Concerns that demand for non-interest-paying bullion will take a hit from the rate hike continue to cast a shadow, and will likely limit any rally in gold.
Spot gold had ticked up 0.3 percent to $1,069.36 an ounce by 0640 GMT, adding to the 1.4 percent gain on Friday. "We believe that trading conditions will start to thin out, but that does not mean trading ranges will necessarily narrow," said INTL FCStone analyst Edward Meir. Liquidity will start to drop as trading enters the last two weeks of the year.
"Given the uninspiring chart patterns, we have to suspect that the path of least resistance remains lower still for the precious group as a whole, exacerbated by a stronger dollar and a more aggressive Fed," Meir said. The metal saw some safe-haven bids on Friday after global equity markets fell sharply as slumping oil prices raised concerns about slower growth, while the dollar slipped against the yen on views the Bank of Japan may not ease policy as much as expected.
Comments
Comments are closed.