Gold edges lower

BENGALURU. — Gold edged lower yesterday as the dollar firmed and as investors took profits after downbeat US data propelled prices to a seven-week high in the previous session.

“At the moment, the upside looks a little bit limited. We’re seeing obviously some increase . . . in net long-positioning in the market, but we’re seeing some selling come through on the ETF side as well,” said ANZ analyst Daniel Hynes, referring to exchange traded funds.

“So it’s going to be difficult for gold to break out of [its] range for the next week or two.”

Spot gold had fallen 0,3 percent to $1 264,88 per ounce by 4.11am GMT. The day before, it hit its highest since June 14 at $1 273,97. US gold futures for December delivery fell 0,6 percent to $1 271,70 per ounce.

A gauge of US factory activity slid from a near three-year high in July amid a slowdown in new orders, and consumer spending barely rose in the previous month, setting the stage for a moderate economic expansion in the third quarter.

“I think investors are probably looking for some further evidence of stronger inflation numbers before they get a little bit more optimistic about a rate hike, which would clearly be a headwind for gold prices if the probability of that starts to rise,” Hynes said.

The dollar clung to modest gains yesterday after bouncing from 15-month lows, benefiting from a pause in selling of the battered currency as investors begin positioning for key events this week, notably tomorrow’s US employment report. — Reuters.