PRECIOUS-Gold prices flat as trade woes, Fed stance boost dollar

* Persistence on rates of interest to final ‘for a while’ – Fed minutes

* SPDR Gold holdings are down practically 7% to date this yr

* Platinum hits Three-month low (Updates costs)

By Sethuraman N R

Might 23 (Reuters) – Gold costs have been regular on Thursday, as simmering Sino-U.S. commerce tensions underpinned the greenback, whereas bullion buyers seemed for a course after the minutes of the U.S. Federal Reserve assembly indicated that charges will stay regular.

Spot gold was regular at $1,273.15 per ounce as of 0517 GMT, after falling to $1,268.97 on Tuesday – its lowest stage since Might Three.

U.S. gold futures edged down zero.1% to $1,272.60.

“The short-term impact of the U.S.-China commerce battle is driving the U.S. greenback index greater generally and that doesn’t assist gold,” Nicholas Frappell, international normal supervisor at ABC Bullion, mentioned.

“Additionally, throughout mid-Might, loads of recent shopping for went into lengthy positions at greater ranges, and since then open curiosity on the CME has declined, which means that a few of these longs received out and are on the defensive.”

The U.S. administration is contemplating Huawei-like sanctions on Chinese language video surveillance agency Hikvision over the nation’s remedy of its Uighur Muslim minority, an individual briefed on the matter mentioned on Wednesday.

The greenback index towards a basket of six main currencies edged up zero.1% to hover close to its one-month excessive touched early within the week.

Asian shares have been within the purple on Thursday amid considerations over U.S.-China commerce.

In the meantime, minutes from the U.S. Federal Reserve’s newest assembly confirmed that officers agreed their present affected person strategy to setting financial coverage might stay in place “for a while,” an additional signal policymakers see no need to vary charges in both course.

“Commentary reiterating officers’ wait-and-see strategy amid a raft of worldwide uncertainties could cool fee minimize hopes,” Ilya Spivak, senior forex strategist with DailyFx, mentioned.

“That appears inherently U.S. dollar-supportive, with haven demand (for greenback) appearing as an additional accelerant as markets pining for coverage assist tilt into risk-off territory.”

Lackluster investor curiosity in bullion was mirrored within the holdings of SPDR Gold Belief, the world’s largest gold-backed exchange-traded fund. Holdings have declined practically 7% to date this yr.

SPDR holdings edged zero.1% decrease to 738.81 tonnes on Wednesday.

Spot gold is anticipated to check a assist at $1,264 per ounce, a break beneath which might open the way in which in the direction of $1,244, based on Reuters technical analyst Wang Tao.

Amongst different valuable metals, silver fell zero.1% to $14.42 per ounce, whereas palladium edged zero.5% decrease to $1,308.

Platinum was regular at $799.02 an oz., after touching its lowest stage since Feb. 15 at $792 earlier within the session. (Reporting by Nallur Sethuraman in Bengaluru; Enhancing by James Emmanuel and Rashmi Aich)

Our Requirements:The Thomson Reuters Belief Rules.

Product categories