Gold gets respite from weaker dollar

The spot gold price posted slight gains during Asian morning trading on Tuesday October 24 as the dollar halted its climb.

The spot gold price was quoted at $1,282.15-1,282.50 per oz as of 05:10 BST, up $0.33 from the previous session’s close. Trade has ranged from $1,280.35-1,283.70 so far today. The price had dipped as low as $1,272.40 on Monday, the lowest since October 6.

• The dollar index eased on Tuesday after rallying the past few trading days to as high as 94.02 on Monday, the highest since October 6, supported by a rise in US Treasury yields and progress in tax reforms.
• Gold prices had come under pressure from a stronger dollar and lack of haven buying after the election victory for Japanese Prime Minister, Shinzo Abe, on October 22, ANZ Research said on Tuesday morning.
• “A sell-off in the dollar late on Monday saw investors return to the market,” the bank added.
• “Having failed to hold $1,300 [per oz] over the past two weeks, the [gold] price now looks to be headed to the $1,256 lows from the beginning of the month,” Chris Beauchamp, market analyst at IG, said.
• A close above $1,300 per oz for gold is needed to reverse the negative outlook, he added.

Silver, PGMs

• In the other precious metals, the spot silver price gained $0.045 to $17.11-17.13 per oz. Platinum rose $4 to $926-931 per oz and palladium gained $12 to $965-970 per oz.
• On the Shanghai Futures Exchange, gold for December delivery was recently at 276.05 yuan ($41.59) per gram, and the December silver was at 3,895 yuan per kg.

Currency moves and data releases

• The dollar index fell 0.1% to 93.74 at 05:10 BST. The index had risen as high as 94.02 on Monday, the highest since October 6.
• In other commodities, the Brent crude oil spot price climbed 0.24% to $57.44 per barrel at 05:12 BST.
• In equities, the benchmark Shanghai Composite Index rose 0.08% to 3,383.24.
• In data on Monday, EU consumer confidence for October came in at -1, while within expectations, a number below zero depicted pessimism among consumers.
• The economic agenda is light today with mainly China’s CB leading index and the USA’s flash manufacturing and flash services purchasing managers’ index of note.

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