Gold prices rebounded modeslty after declining for two consecutive weeks, but further price erosion could be immenient as investors lower their exposure to yearly lows.
Gold for August delivery on the Comex division of the New York Mercantile Exchange rose $3.80 or 0.3 percent to $1,095.30 per ounce. Trade has ranged from $1,092.30 to $1,104.90.
Prices have declined for ten straight sessions and lost over six percent of its value with the yellow-metal sustaining a brutal selloff at the start of the week.
“Precious metals this morning appear to have recovered some of their losses of recent days,” Commerzbank said.
Continuing the downward spiral in holdings, ETFs tracked by FastMarkets were cut to 1,564 tonnes, the lowest level in 2015.
“Against this backdrop, gold is too cheap, and is still facing headwind from the investment side,” the Commerzbank added.
In data, US weekly unemployment claims were 255,000, besting forecasts of 279,000 and the lowest level since 1973. The US leading index is due for release later today.
Turning to wider markets, Germany’s DAX and France’s CAC-40 were basically unchanged, while the euro was 0.3 percent stronger at $1.0956 against the dollar.
As for other precious metals, Comex silver for September delivery increased two cents to $14.750 per ounce. Trade has ranged from $14.715 to $14.960.
Platinum for October settlement rose $3.80 to $983.70, while the most actively traded palladium contract was at $626.95, up $0.20.
(Editing by Tom Jennemann)
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