MET­ALS

The Star Early Edition - - MARKETS -

GOLD stead­ied yes­ter­day as traders awaited Fed­eral Re­serve min­utes later in the day and an opin­ion poll ahead of next week’s Swiss gold ref­er­en­dum, with dol­lar strength pulling prices back from near three-week highs.

In London, gold was fixed at $1 196 an ounce (R425 533 a kilo­gram) in the af­ter­noon, up $3.25 from Tues­day’s sec­ond fix. On Tues­day spot gold peaked at $1 204.70, hav­ing slid to a low of $1 131.85 this month.

The dol­lar hit a fresh seven-year high against the yen yes­ter­day as in­vestors added favourable bets be­fore the pub­li­ca­tion of Fed­eral Re­serve min­utes that could high­light pol­icy di­ver­gence with its peers.

Traders will be look­ing for clues on when the Fed will raise rates as any in­crease could hurt non-in­ter­est bear­ing gold.

“With fur­ther weak­ness in the yen or euro against the dol­lar, we could well see gold hav­ing an up­hill strug­gle,” Jonathan But­ler at Mit­subishi said. “Go­ing for­ward, it’s very much go­ing to de­pend on the out­look for the US econ­omy.” – Reuters

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