The gold price was steady around the $1,180 levels after rising on Friday on support of a weaker greenback and some bargain-hunting from China.
Spot gold price was last seen at $1,181.10, about $1.80 lower than Friday’s close. Prices are seen remaining steady around this level, consolidating gains made last week after the dollar fell following Wednesday’s FOMC meeting.
“The USD has already rallied more than its typical move historically, and many of the arguments currently bring used to justify an extension are likely already in the price,” said a report from HSBC.
“Part of the reason for gold’s rapid gains this week may be its heretofore steep losses. Gold has been on the defensive for the bulk of this year and much of this week’s rally can be attributed to rapid short covering,” said analyst James Steel from HSBC Securities.
Supporting gold prices was also steady premium on the Shanghai market, implying good demand from China. Analysts say that this may be a bullish sign for gold as China dmand usualy drops after the Lunar New Year.
For the week ahead, there are plenty of macro data to watch – The main focus will be on Greece still, with German Chancellor Angela Merkel and Greek Prime Minister Alexis Tsipras meeting in Berlin tpday to discuss conditions around the extension of Greece’s bailout plan.
On Tuesday, the flash PMIs for the main Eurozone economies as well as for China will be published. With uncertainties around growth in these regions, these numbers should be closely watched. In the US and the UK,
Other preciouos metals traded similarly in ranges but were biased towards the downside – silver was last nine cents lower at $16.65, platinum was down $5.50 at $1,133 and palladium was $4 lower at $772.
The post Gold price steady, weaker dollar and Chinese demand to support gains appeared first on The Bullion Desk.
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