Gold prices were flat in the morning US trading period as market participants await key US data points, which might provide a clearer direction.
Gold for July delivery on the Comex division of the New York Mercantile Exchange was last up $1.50 or 0.1 percent at $1,187.10. Trade has ranged from $1,184.50 to $1,192.00. The 50-day moving-average is at $1,198.37, with support at $1,180.00.
The dollar was 0.1 percent stronger at 1.0894 against the euro, resuming its climb after briefly consolidating Wednesday afternoon.
“Dollar strength was the main contributor as per usual [on yesterday's movement], 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,” Marex Spectron’s David Govett said. “Precious metals remain stuck in the doldrums and show no signs of breaking out of recent ranges. “
In Europe, the FTSE and the DAX both ended lower on Wednesday on concerns that Greece remains some way from a bailout deal – German finance minister Wolfgang Schäuble and IMF chief Christine Lagarde both said that more work needs to be done.
The DAX, CAC-40 and FTSE 100 chalked up further losses on Thursday, falling between 0.2 and 0.7 percent.
But the Dow Jones finished more than 120 points higher on Wednesday, rebounding from Tuesday’s weakness, on hopes that a Grexit can be avoided.
In data, US weekly unemployment was 282,000, above the forecast of 272,000. Japanese retail sales year-over-year in May were up five percent – estimates projected a 5.3 percent increase.
US pending home sales and building consents will be released later today.
Market participants will the shift their focus to tomorrow’s release of first quarter US GDP, which is now expected to be negative after a particularly harsh winter.
“We don’t think much will be happening today as the markets will be waiting for the revision to first quarter US GDP data out tomorrow (now expected to be in negative territory),” Edward Meir, analyst at INTL FCStone, said.
“Although growth revisions to the quarter could be considered ancient history by now, the release will still be significant, since if the number is revised downward, the economy will have much more ground to make up if it is to live up to the Fed’s somewhat ambitious growth target for 2105,” he added.
The poor data could prompt the Fed from subsequent rate hikes after initial normalising monetary policy sometime later this year, Meir said.
As for the other precious metals, Comex silver for July delivery was last up more than two cents at $16.675 per ounce. Trade has ranged from $16.600 to $16.775.
Platinum futures for July delivery on the Nymex declined $2.70 at $1,116.30 per ounce, while the most-actively traded palladium contract was at $783.00 per ounce, down $2.00.
(Editing by Tom Jennemann)
The post Gold remains mired in the ‘doldrums’ appeared first on The Bullion Desk.
No comments:
Post a Comment