Gold prices rose to a one-week high on Wednesday on technical trading and some safe-haven demand even as the dollar held on to gains and stocks rose on risk appetite. Spot gold was up 0.2 percent at $1,349.71 per ounce by 1:48 pm EDT (1748 GMT), after touching its highest since April 11, while US gold futures for June delivery settled up $4, or 0.3 percent, at $1,353.50 per ounce.
"We are up on safe-haven demand and a general commodities move," said George Gero, managing director of RBC Wealth Management, adding concerns over US sanctions on Russia still remain. Gold broke above $1,350, a significant resistance level for gold, said Activtrades chief analyst Carlo Alberto De Casa, and a close above this level would confirm positive momentum for gold. "If gold can remain above the $1,350 level for a couple of days there is a good chance to see it jumping up to $1,400," he said.
Kitco Metals senior analysts Jim Wyckoff said the chart positions for gold and silver are "tilted in favor of the bulls, which is inspiring technically based buying interest at mid-week." The dollar index, which measures the greenback against a basket of currencies, eased toward a three-week low reached on Tuesday. A weaker greenback makes dollar-priced gold cheaper for holders of other currencies.
Dollar losses were capped by a weaker pound which fell to a four-day low on Wednesday after British inflation unexpectedly cooled to a one-year low in March. In physicals, Sri Lanka imposed a 15 percent tax on imported gold with effect from Wednesday to prevent illegal smuggling of the metal from the island nation, a finance ministry official said. Spot silver climbed 2.7 percent at $17.19 per ounce, after touching its highest since February 1 of $17.26.
Platinum gained 0.3 percent at $938.50 per ounce, after hitting a three-week high of $948.70. Palladium rose 2.6 percent to $1,036 per ounce, having touched its highest since February 28, $1,046.20. Palladium prices rose on fears of Russian supply disruptions after the recent US sanctions on shareholders of Nornickel, the world's largest producer. "We believe the recent rally is mainly driven by speculation and the gains are on a weak footing," Julius Baer said, adding that sanctions were unlikely to be extended to Nornickel itself because the United States needs palladium.
Comments
Comments are closed.