Spot gold fell more than 1 percent on Monday, as the dollar regained some ground in holiday thinned trade, but traders said the metal was well supported given a dovish stance from US and European central banks. Central banks, however, are leaving themselves with fewer policy tools, which means there's a diminishing window for fresh upside for gold based on further easing steps, said chief investment officer Jonathan Barratt of Ayers Alliance in Sydney.
"In my mind there's still concerns out there on price." Spot gold fell by 1 percent to $1,242.60 a tonne by 0628 GMT, having finished last week a tad higher. Prices are consolidating below a 14-month peak of $1,282.51 struck on March 11, which was the loftiest since January 2015. Prices had slumped below $1,050 a tonne in December.
US gold eased by 0.9 percent to $1,243.20. "Due to the Easter holiday, the market will probably consolidate," a trader in Singapore said. "Overall the market trend looks weak but well supported, so if there are any moves, it's just to square positions for the week due to the holidays."
Comments
Comments are closed.