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Gold Steady Near 4-Week Highs

Gold Steady Near 4-Week HighsGold Steady Near 4-Week Highs

Gold held near its highest in four weeks on Monday after rising almost 1% in the previous session, buoyed as geopolitical tensions boosted its safe-haven appeal.

Spot gold was almost flat at $1,267.01 per ounce at 0801 GMT. On Friday, it climbed 0.9% to touch its strongest since May 1 at $1,269.50. US gold futures slipped 0.1% to $1,266.9, Reuters reported.

Political tensions surrounding US President Donald Trump are providing some safe-haven support for gold, OCBC analyst Barnabas Gan said.  

The market is also watching out for the Federal Open Market Committee meeting next month for any cues on US Federal Reserve’s stance on interest rate hikes and balance sheet reduction intentions, Gan added.

“Asian trade on Monday was a relatively muted affair, with early session interest following a reported North Korean missile test soon fizzing out,” Sam Laughlin, senior precious metals trader at MKS said in a note.

Gold held a narrow range on Monday as Chinese markets were closed for a two-day break, he added. Chinese markets are closed on Monday and Tuesday for the Dragon Boat festival.

Spot gold may climb to $1,276 per ounce, as it has broken above a resistance at $1,264, said Reuters technical analyst Wang Tao.     

Meanwhile, silver touched its highest since April 28 at $17.39 earlier in the day. It was last flat at $17.36 per ounce. Silver’s more than 3% gain over last week was its biggest weekly gain since the week ended Jan. 6.

Platinum rose 0.3%, to $958.30 per ounce. Palladium, was up 0.4% at $793 per ounce after hitting a near two-week peak of $796.70 early in the session.  

 

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