Tuesday 5 August 2014

Gold holds below $1,300 as strong dollar, fund outflow weigh

Gold held steady below $1,300 an ounce on Tuesday, although a strong dollar and the first outflow in more than a week from the world's top bullion fund weighed on sentiment. 

Gold has recently been hurt by U.S. economic data as a strong recovery could prompt the Federal Reserve to raise interest rates, diminishing the appeal of non-interest bearing assets such as bullion. 

Spot gold was little changed at $1,288.84 an ounce by 0337 GMT, after slipping 0.4 percent in the previous session. U.S. gold was up $1 at $1,289.90. 

The dollar was pressured by a fall in U.S. bond yields on Tuesday but it held near a 10-1/2 month peak, making dollar-denominated gold more expensive for holders of others currencies. 

Gold failed to receive strong safe-haven bids as Israel and the Islamist Hamas movement agreed on Monday to an Egyptian-proposed ceasefire to end four weeks of fighting in the Gaza Strip. 

The physical markets have also failed to provide strong support as buying interest has been sluggish globally. 


No comments:

Post a Comment