Gold prices rose on Friday amid signs of slowing US growth and concern over Greece’s ability to fulfill its debt obligations.
Gold for June delivery ended up $5.10 at $1,203.10 per ounce on the Comex division of the New York Mercantile Exchange. Trade has ranged from $1,197.00 to $1,207.80.
“Gold continues to straddle the $1,200 level. Oil and base are beginning to trend higher with brent now clearing the 23.6 percent at 61.82,” Triland metals said in a note.
“Should gold clear the $1,225 range top then the next target will be $1,244 where we expect strong medium term resistance,” it added.
Greece, meanwhile, remains a concern – IMF managing director Christine Lagarde today stoked fears that the country will not meet its financial obligations at the IMF Spring Meeting in Washington. A lack of payment would likely send European markets further down and boost the price of gold as a safe haven for investors.
“The bond situation is somewhat mixed with German 10-year bund yields falling which is bullish for gold in that it reduces to opportunity cost of holding gold, while Greek bond yields are rising on the back of fears over default,” FastMarkets researcher William Adams said.
“However, I think the main supporting factor for gold is the weaker dollar,” Adams continued.
From the US, the CPI increased 0.2 percent last month, unchanged from February and in line with expectations.
Inflation remains fairly subdued due to sharp declines in energy prices; nevertheless, the Federal Reserve would prefer to see more signs of tangible price appreciation before raising interest rates.
The US central bank is currently debating when might be the right time to raising interest rates from near-zero levels for the first time since 2008. The current consensus is that the first rise could happen at the September meeting.
In the wider-markets, the Dow Jones industrial average and S&P were down 1.8 and 1.4 percent respectively. The dollar was 0.3 percent stronger at 1.0797 against the euro.
As for the other precious metals, Comex silver for May delivery closed down one cent at $16.229 per ounce. Trade has ranged from $16.190 to $16.49.
Platinum for July delivery on the Nymex was up $8.30 at $1,167.5 per ounce, while the most actively traded palladium contract was at $782.95, increasing $3.20.
Light sweet crude (WTI) futures closed down 0.79 cents or 1.4 percent at $57.32 per barrel in the most active contract.
(Editing by Tom Jennemann)
The post Gold up on weak US data, Greek jitters appeared first on The Bullion Desk.
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