Gold prices fell in morning US trade as the market has already priced in yet another Chinese bank rate cut.
Gold for June delivery on the Comex division of the New York Mercantile Exchange was last down $6.00 at $1,197.10 per ounce. Trade has ranged from $1,196.10 to $1,209.00.
“The market is very much stuck at the moment, with $1,200 seeming to be the pivot point for the range. Even China cutting its bank reserve-ratio by one percent overnight, has done little to motivate the market,” Marex Spectron’s David Grovett said in a note.
“We have seen some buying this morning in thin volume but otherwise precious metals seem remarkably indifferent,” the note added.
China is expected to open 1.2 trillion-1.4 trillion yuan of funds for lending through the PboC by lowering the ratio by another 50 basis points for small and medium-sized banks. These banks lend to agricultural borrowers and micro businesses, releasing an additional 300 billion yuan in funds, analysts suggested.
The euro was 0.68 percent stronger at 1.074 against the dollar and with a quiet day of data ahead, market participants might look to the key Hindu festival of Akshaya Tritiya in India on Tuesday, where it is custom for gold items to be given for gifts.
While Indian import of 125 tonnes in March may weigh on premiums, good demand should add some near-term support for gold in the coming sessions, although demand is subdued so far, according to local reports.
“The weaker dollar has provided some lift but, as in the base metals, the higher prices seem to be attracting some selling; weaker equity markets on Friday also led to some risk reduction too,” FastMarkets analyst William Adams said.
In Europe, Germany’s DAX and France’s CAC-40 were up 1.6 percent and 0.4 percent respectively.
As for the other precious metals, Comex silver for May delivery was down 16 cents at $16.065 per ounce. Trade has ranged from $15.98 to $16.34.
Platinum for June delivery on the Nymex fell $4.1 at $1,153.50 per ounce, while the most actively traded palladium contract was at $771.75, up $11.40.
In other markets, light sweet crude (WTI) futures were down 52 cents or 0.9 percent at $55.22 per barrel in the most active contract.
(Editing by Tom Jennemann)
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