PRECIOUS-Gold holds tight range as uncertain U.S. rate view saps dollar
* Palladium off all-time high of $1,185.40/oz
* SPDR Gold Trust holdings fell on Friday
* Hedge funds hike net short positions
* GRAPHIC-2018 asset returns: ( ) (Updates prices and adds comment)By Sumita LayekBENGALURU, Nov 19 (Reuters) - Gold consolidated in a tight$6 range on Monday while investors watched for catalysts in aholiday week, holding above $1,220 as the dollar softened onuncertainty about U.S. interest rates.Spot gold inched 0.1 percent lower to $1,220.63 perounce by 1339 GMT, having hit a one-week high of $1,225.29 inthe previous session.
U.S. gold futures were down 0.2 percent at$1,221.10."We will continue to see some consolidation between $1,200and $1,250 for a couple of weeks until we see a kind of catalyst... this could be Brexit negotiations, the G20 meeting betweenthe U.S. and China," said Hussein Sayed, chief market strategistat FXTM."If we hear more dovish comments on the tightening cycle,this will drag the dollar lower and give another push to goldprices."The dollar drifted lower, having posted its biggest weeklydrop in two months, after U.S. Federal Reserve policymakersraised concerns about a potential global slowdown, triggeringdoubts over how far the rate-tightening cycle has left to run.The Fed has raised rates three times so far this year,making it more expensive to hold non-interest-bearing gold, anda fourth rate increase is expected next month.
"With America on holiday on Thursday on account of
Thanksgiving Day, it's going to be a very quiet week," saidAlasdair Macleod, head of research at GoldMoney.com.World shares crept higher, amid conflicting signals about apotential truce in the China-U.S. trade dispute. "Unless we see more turbulence in emerging markets andindustrialised country stock markets, then the outlook for goldis not positive," a Germany-based analyst said.
Indicative of investor sentiment toward bullion, holdings ofSPDR Gold Trust , the world's largest gold-backedexchange-traded fund, fell 0.2 percent to their lowest in a weekon Friday. Also, hedge funds and money managers boosted their net shortposition in gold to the highest in five weeks. Palladium dipped 0.8 percent to $1,167.80 per ounce,having climbed to an all-time high of $1,185.40 in the previoussession.
The autocatalyst metal is outrunning other precious metals,with a surge to record highs putting it within a whisker ofparity with gold for the first time in 16 years. Silver slipped 0.4 percent to $14.36 an ounce, whileplatinum was down 0.1 percent at $845.30 per ounce. (Reporting by Sumita Layek and Swati Verma in Bengaluru;Editing by Edmund Blair and Dale Hudson)
Outside U.S. +91 8067491638; Reuters Messaging:Sumita.Layek.thomsonreuters.com@reuters.net)) Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.  |