Gold steady

BENGALURU — Gold prices steadied near oneand-a-half-week lows yesterday, as a US equities rally offset support from the uncertainty over US government policies and a weaker dollar.

Spot gold prices were slightly down 0,2 percent to $1 198,20 per ounce at 3.20am GMT. On Wednesday, they hit their lowest since January 13 at $1 192,74. US gold futures was steady at $1 198,30.

“The bullish impact of a weaker dollar was more than offset by a soaring US equity market where we saw the Dow take out the 20 000 mark for the first time,” said INTL FCStone analyst Edward Meir.

“We suspect that gold could come under further pressure again as the follow-through from the US stock rally reverberates through into other global markets,” he added.

The Dow closed atop the 20 000-mark for the first time overnight, boosted by solid earnings. Asian stocks gained yesterday, led by the Wall Street rally.

However, the currency markets focused more on Trump’s trade protectionism and the negative effect it could have on the dollar. The dollar index, which measures the greenback against a basket of currencies, fell 0,2 percent to 99,846.

Spot gold may retest support at $1 197 per ounce, with a good chance of breaking below this level and falling towards the next support at $1 182, according to Reuters technical analyst Wang Tao.

“Gold continues to find support from safe-haven buying amidst some near-term weakness in the US dollar,” said ANZ senior commodity strategist Daniel Hynes.

“Political uncertainty has intensified in early 2017, with Brexit and President Trump’s combative trade policies resulting in a fall in risk appetite.”