Gold inches lower on dollar recovery from 2-week trough, low inflation data




By Sumita Layek


(Reuters) – edged lower on Thursday as the dollar’s recovery from a two-week trough hit in the previous session and a softer U.S. data dampened bullion’s appeal.



Spot fell 0.3% to $1,837.13 per ounce by 0636 GMT, after hitting a more than one-week high on Wednesday.


U.S. futures slipped 0.3% to $1,837.40.


“The has rebounded from Wednesday’s low, that’s putting some pressure on Low liquidity due to Chinese new year holiday is also weighing on the prices,” said DailyFX strategist Margaret Yang.


Gold has also lost some support as U.S. data showed there is not much of down the road, Yang said.


The U.S. Consumer Price Index for January came in lower than expected. Gold is considered a hedge against


U.S. Federal Reserve Chair Jerome Powell in a speech on Wednesday emphasised on the need for fiscal policy and said it is the not the right time to focus on federal debt issues.


Investors kept a close watch on the developments on the passage of a $1.9 trillion U.S. relief bill.


“It’s quite a mixed narrative right now,” said Stephen Innes, chief global market strategist at financial services firm Axi.


“Too much stimulus in the market could force the Fed to tighten the monetary policy, that’s negative for gold, but if the stimulus isn’t big enough, gold is not going to benefit.”


Autocatalyst platinum rose 0.3% to $1,244.84 an ounce, having notching a peak since February 2015 of $1,250 on Wednesday.


“The bottom line is there could be a shortage” as platinum’s demand surges for automobiles and fabrication, Innes said.


CME Group raised margins for platinum futures by 10%.


Spot silver shed 0.5% to $26.86 and palladium eased 0.6% to $2,340.94.


 


(Reporting by Sumita Layek in Bengaluru; Editing by Rashmi Aich)

(Only the headline and picture of this report may have been reworked by the Business Standard staff; the rest of the content is auto-generated from a syndicated feed.)

Dear Reader,

Business Standard has always strived hard to provide up-to-date information and commentary on developments that are of interest to you and have wider political and economic implications for the country and the world. Your encouragement and constant feedback on how to improve our offering have only made our resolve and commitment to these ideals stronger. Even during these difficult times arising out of Covid-19, we continue to remain committed to keeping you informed and updated with credible news, authoritative views and incisive commentary on topical issues of relevance.

We, however, have a request.

As we battle the economic impact of the pandemic, we need your support even more, so that we can continue to offer you more quality content. Our subscription model has seen an encouraging response from many of you, who have subscribed to our online content. More subscription to our online content can only help us achieve the goals of offering you even better and more relevant content. We believe in free, fair and credible journalism. Your support through more subscriptions can help us practise the journalism to which we are committed.

Support quality journalism and subscribe to Business Standard.

Digital Editor





Source link