Gold steady

BENGALURU. — Gold prices held steady yesterday, not far from the more than two-week highs hit in the previous session, as the dollar crept up from multi-month lows even as the fading prospect of a US monetary tightening continued to pressure the greenback.

The dollar stayed on the defensive and remained close to more than 10-month lows as investors wagered any further tightening in the US would be slow at best, while optimism on China’s economy underpinned Asian shares and commodities.

“We still remain somewhat neutral on gold this year despite a rather good run of late,” said Edward Meir, analyst at INTL FCStone.

“Still, we are not overly bearish on the precious metal at the stage either, as the backdrop of a falling dollar is too difficult to ignore.”

Also weighing on the dollar was the collapse of Republican efforts to overhaul or repeal Obamacare in the US Senate on Tuesday, dealing a sharp setback to Trump and the Republican Party’s seven-year quest to kill former President Barack Obama’s signature healthcare law.

“The recent strength (in gold prices) is due to currency dynamics more than anything else,” said Mark Keenan, commodity strategist at Société Générale.

“We continue to forecast lower prices moving forward,” Keenan said.

Spot gold was nearly flat at $1 241,46 per ounce at 4.08am GMT. In the previous session, it hit its highest since June 30 at $1 244,56. US gold futures for August delivery fell 0,1 percent to $1 240,90 per ounce.

Spot gold may rise more to $1 250 per ounce, as it had cleared a resistance at $1 239, said Reuters technical analyst Wang Tao. — Reuters.