Gold prices edged higher on Friday, supported by a weaker dollar and safe-haven demand amid US political concerns and tensions between the United Kingdom and Russia. However, further gains were capped by expectations that the US Federal Reserve would raise interest rates at its policy meeting next week.
Spot gold was up 0.2 percent at $1,317.97 per ounce as of 0821 GMT. US gold futures for April delivery were little changed at $1,317.80. "As choppier markets seem likely, gold will remain a good hedge against unexpected spikes in equity market volatility and geopolitical tensions, in our view," UBS analysts said in a note. Growing US political uncertainties following the recent departure of two key officials, former Secretary of State Rex Tillerson and top economic advisor Gary Cohn, from the Trump administration have left investors worried.
"Bullion continues to search for a catalyst to break out of the recent range, and in lieu of such an event we expect the metal to hold within $1,313 - $1,330, noting any extension lower should meet strong support toward $1,300," MKS PAMP Group trader Sam Laughlin said in a note. Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, rose 0.5 percent from a day earlier to 838.15 tonnes on Thursday, marking the biggest inflow since January.
Comments
Comments are closed.