Moneycontrol
Last Updated : Nov 26, 2018 12:02 PM IST | Source: Reuters

Firm dollar caps gold rise, investors eye G20 summit

Spot gold inched 0.1 percent higher to $1,223.31 per ounce by 0415 GMT. US gold futures were up about 0.1 percent at $1,223.8 per ounce.

Gold prices were steady on Monday, capped by headwinds from a firm dollar, while investors looked to the G20 meeting this week for signs of a thaw in the Sino-US trade conflict.

Spot gold inched 0.1 percent higher to $1,223.31 per ounce by 0415 GMT. US gold futures were up about 0.1 percent at $1,223.8 per ounce.

"People are moving some of their capital into gold at this point of time, given the uncertainties around the pace of rate hikes by the Fed, the US-China trade war... People see gold as a hedge against these uncertainties," said Brian Lan, managing director at Singapore dealer GoldSilver Central.

However, a stronger dollar restricted further gains in the price of the yellow metal.

The dollar index, which measures the greenback against a basket of six major currencies, was up about 0.1 percent, as investors sought shelter in safe haven currencies as fears of a global growth slowdown and US-Sino trade tensions sapped risk appetite.

"Dollar movements will ultimately provide gold's near-term direction," said Stephen Innes, APAC trading head at OANDA in Singapore.

Gold market participants are now focusing on talks between US President Donald Trump and Chinese President Xi Jinping to be held on the sidelines of a G20 summit in Argentina at the end of this week.

Officials from some G20 countries, anxious to see a swift end to the Sino-US trade war, are hopeful but not confident that the meeting may yield at least a partial ceasefire.

"The growing unease regarding the G20 summit and the possibility of a deal has seen gold prices hold up relatively well," analysts at ANZ said in a note.

The US Federal Reserve's Federal Open Market Committee will also release the minutes from its Nov. 7-8 policy meeting later this week. The market will look for any discussion of what conditions might bring about a Fed pause.

Among other precious metals, silver climbed 0.6 percent to $14.33 an ounce and platinum edged 0.1 percent higher to $839.70. Palladium gained 1.1 percent at $1,131.00 an ounce. Prices fell about 3 percent in the previous session, their biggest one-day percentage decline since August 15.

 

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First Published on Nov 26, 2018 11:55 am
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