Gold rebounds in New York

30 Sep, 2017

Gold rebounded above a six-week low on Thursday, as the dollar turned lower and ushered in short-covering. Bullion was earlier pressured on proposed US tax reforms and strong economic data that supported the case for another US interest rate hike this year. Spot gold was up 0.5 percent at $1,286.60 per ounce by 4:01 p.m. EDT (2001 GMT), after hitting $1,277.26, its lowest since Aug. 16. US gold futures for December delivery settled up $0.90, or 0.07 percent, at $1,288.70 per ounce, after touching a five-week low of $1,280.40.
"The market was oversold, then got a little consolidation bounce at the $1,280 level," said Bill O'Neill, partner at Logic Advisors in Upper Saddle River, New Jersey. "I think it's going to be a steady, gradual march of higher (Treasury) yields into year-end, which is not too constructive for gold," said O'Neill.
Technical Fibonacci support for gold was at $1,281.30, analysts at ScotiaMocatta said. The 100-day moving average was at $1,271. In other metals, platinum was up 0.4 percent at $919.24 per ounce, earlier dipping to a more than two-month low at $910.50. Palladium was up 0.4 percent at $931.00 per ounce. For the second consecutive day, palladium prices rose above platinum, after speculators piled into the market. Silver was up 0.4 percent at $16.80 per ounce after dropping to $16.64, its lowest since Aug. 16.

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