Dubai gold hovers around 5-month high. Which way would it go?
Apr 20 2017
The United States, its allies and China are working together on a range of responses to North Korea's latest failed ballistic missile test, US President Donald Trump's national security adviser said on Sunday, citing what he called an worldwide consensus to act.
The dollar dipped to a five-month low against the yen early on Monday.
Mnuchin's expectations of a tax system reform for 2017 which, in his view, would strengthen the American currency, flipped investors' sentiment towards the positive side and made gold slide a bit.
Spot gold is expected to rise to $1,303 per ounce as it has broken above a resistance at $1,282, according to Reuters technical analyst Wang Tao.
US stocks regained some ground after the recent global risks had weighed on the market last week.
Gold prices stumbled Wednesday as the dollar clawed its way up from the three-week low reached Tuesday.
Silver futures declined 0.242 dollar or 1.3 percent to close at USD 18.31 per troy ounce at the COMEX.
The Atlanta and New York Federal Reserve banks downgraded their outlook for US economic growth for the first quarter after disappointing data on retail sales and consumer prices in March.
The dollar index, which tracks the greenback against a basket of six rival currencies, edged up 0.2% to 99.62, pulling away from Tuesday's low of 99.36, its deepest trough since March 28.
Fed fund futures 0#FF: rose in price, now pricing less than a 50 percent chance of a rate hike in its June 13-14 meeting for the first time in about a month. It touched its highest since November 11 at $18.65 on Monday.
The dollar has given up three quarters of the gains it had made after the Trump's surprise election victory had boosted expectations that his stimulus and deregulation plans would buoy USA growth and inflation.
US Vice-President Mike Pence said Washington would work with its allies and China to put economic and diplomatic pressure on North Korea but added the US would defeat any attack with an "overwhelming response".
Gold prices rose to a fresh five-month high Monday, helped by a weaker US dollar and continued concerns over geopolitical risk.