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Gold Falls From One-Year Peak

Gold Falls From One-Year PeakGold Falls From One-Year Peak

Gold fell early on Monday after hitting its highest level in more than a year in the previous session, as the dollar recovered from last week’s lows and as a lack of geopolitical developments dented safe-haven appeal.

Spot gold was down 0.7% at $1,337.61/oz. It rose to $1,357.54 on September 8, the highest since August 16 2016, Reuters reported.

US gold futures for December delivery were also down 0.7% at $1,341.70/oz.

“The major determinant of gold last week was actually geopolitical tensions, but over the weekend, we did not see any crisis triggering event so we’re going to have less chances for gold prices in the upward direction,” said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.

The US dollar won a reprieve from risk aversion on Monday and pulled away from last week’s two-and-a-half-year low after North Korea held a party at the weekend rather than launch another missile.

Spot gold could break a support at $1,332/oz and fall more to the next support at $1,317, said Reuters technical analyst Wang Tao.

Speculators raised their net long position in Comex gold for the eighth consecutive week to the highest in nearly a year in the week to September 5. Holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.3% to 834.50 tons on Friday.

In other precious metals, silver was down 0.5% to $17.84/oz after touching its highest since April in the previous session. Platinum was down 0.7% at $997.75/oz while palladium was 0.4% higher at $938.22/oz.

 

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