Gold edges up

BENGALURU. — Gold edged up yesterday from a near three-week low hit in the previous session, supported by softer US economic data and a fall in Asian shares following a report that President Donald Trump was being probed for possible obstruction of justice.

Weaker US retail and inflation data overshadowed a rate hike by the US Federal Reserve on Wednesday, raising doubts about the improvement in the economy and pressurising the dollar.

“Although the Fed is saying the data is transitory, the market is struggling to align with this view,” said Jeffrey Halley, senior market analyst at OANDA.

“Thus we are seeing the U. dollar under pressure which has been positive for gold in the short-term.”

Spot gold rose 0,2 percent to $1 262,86 per ounce by 0800 GMT. It hit a low of $1 256,65 in the previous session, its weakest since May 26. US gold futures for August delivery fell 0,9 percent to $1 264,50 an ounce.

“We are looking for gold to hold support around $1 260, with expectations that the recent soft US data and ongoing geopolitical concerns should be supportive,” MKS PAMP trader Sam Laughlin said.

Risk sentiment was hit after Washington Post reported that Trump is being investigated by special counsel Robert Mueller for possible obstruction of justice. As long as uneasiness around the Trump government among speculators and investors exists, gold will hold up pretty well, said Yuichi Ikemizu, Tokyo branch manager at ICBC Standard Bank.

Gold considered a safe haven during times of political and financial uncertainty.

“Spot gold was also supported by short-term interest in physical gold in Asia, especially from Shanghai this morning,” Halley said.

In the wider markets, US stock futures and Asian shares slid yesterday with MSCI’s broadest index of Asia-Pacific shares outside Japan dropping 0,7 percent. Reuters.