The gold price consolidated losses sustained on Wednesday, with a quiet session in Asia setting the scene for the day ahead.
“Following the overnight rout we were expecting to see some interest from Asia during today’s session; however, aside from a moderate level of support courtesy of Chinese trade, interest was generally muted,” MKS’ Alex Thorndike said.
Spot gold was last at $1,188.40/1,189.20 per ounce, up $1.50 on Wednesday’s close – it slipped $20 its softest in two weeks yesterday, pressured lower by a resurgent dollar.
The greenback has stepped back to 1.0919 against the euro from the one-month high earlier in the session at 1.0862.
“Yesterday’s move should really have been of no surprise to anyone,” Marex Spectron’s David Govett said. “Dollar strength was the main contributor as per usual, but the range remains intact and I reiterate for the umpteenth time that we are stuck between broadly $1,175 and $1,225 and we continue to trade that range.”
Other metals were similar; silver climbed eight cents to $16.76/16.81 per ounce, having also hit two-week lows on Tuesday. Platinum meanwhile was up $7 at $1,127/1,132 while palladium was $6 higher at $783/788.
“Silver and palladium are holding up better than gold and platinum. We would expect the dips to attract buying in gold, especially as the markets may well get more nervous about Greece,” FastMarkets’ analyst William Adams said.
Greek officials and its creditors will again attempt to negotiate a bailout deal today; a lack of progress in recent talks pushed European equities lower yesterday, with the FTSE 100 falling 80 points. The Dow Jones also closed lower, falling more than 190 points.
Greece must repay four loans to the International Monetary Fund in June totalling 1.6 billion euros; Athens has so far indicated that it may not be able to make these payments without a deal in place.
Still, confidence in the European economy remains high – the GfK German consumer climate at 10.2 was better than expected, up from 10.1 previously and the highest reading since October 2011.
The FTSE 100 is clawing back some of the lost ground – it was last up around 24 points.
There are no other major data announcements of note scheduled for Wednesday, with Friday’s US first-quarter GDP number, which is expected to be revised into negative territory, looming large on the horizon.
(Editing by Mark Shaw)
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