The gold price moved higher during Wednesday morning sessions, as it found support from a weaker dollar and an uptick in oil prices.
Spot gold was last at $1,180.90/1,181.80, a $4.20 increase on the previous day’s close, but the psychologically important $1,200 level remains elusive.
The dollar was last at $1.1305 as it pared back from the highs noted last week following strong US non-farm payroll data.
Meanwhile, oil prices have also helped improve sentiment surrounding commodities, brent was up $0.90 at $61.04 and crude at $65.53 was up $0.65.
US weekly crude oil inventories fell 6.7 million barrels compared with expectations for a decline of less than 2 million barrels.
Greece continues to overshadow sentiment as a solution has yet to be reached. The country has three weeks to secure a bailout deal but it remains at odds with its creditors about the extent of reforms and its targets. This uncertainity should act as a boost for gold, as it is seen as a safe-haven asset.
“Given the stalemate over Greece, the potential for other asset classes to correct and the weaker dollar, we are mildly bullish for gold and would be prepared to get even more bullish if it starts to gain momentum,” FastMarkets analyst William Adams said.
In today’s data, Japanese PPI came in close to expectations at 2.1 percent, while French industrial numbers disappointed at -0.9 percent. Later, Italy will release its industrial production data. Attention will then focus on data due towards the later part of the week, which includes Chinese new loans and M2 money supply, plus US unemployment claims and PPI, as well as EU industrial production.
Palladium remained around two-month lows at $741/746, a $2 increase. The metal has come under pressure following concerns that the supply deficit will be smaller this year as automotive demand in China has not been as strong as expected.
“Prices are currently getting close to oversold levels, bringing the possibility of a reversal,” said Mitsubishi “Plus value investors/industrial users see current prices as relatively attractive.”
Silver at $16.06/16.11 was up on the previous day’s $15.95. Platinum at $1,110/1,115 was up $4.
The post Gold price up on dollar weakness, palladium may see reversal appeared first on The Bullion Desk.
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