Gold little changed as dollar gains versus euro on ECB policy
Reuters|
Updated: Oct 27, 2017, 01.01 PM IST
Gold prices drifted in a narrow range on Friday after hitting a near three-week low in early trade as the dollar gained against the euro after the European Central Bank extended its bond buying programme.
Spot gold was roughly unchanged at $1,266.81 per ounce, as of 0543 GMT after touching its lowest since Oct. 6 at $1265.08. Gold was headed for an about 1 per cent weekly decline.
US gold futures for December delivery shed 0.2 per cent to $1,267.50.
"How gold finishes the week will now be entirely at the whim of the US dollar and US yields with little to no geopolitical safe haven premium left in the price," said Jeffrey Halley, a senior market analyst with OANDA, in a note.
The dollar stood tall on Friday, on track for weekly gains, while the euro slumped to three-month lows after the European Central Bank extended its bond purchases and reduced the chances that it would hike interest rates in 2018.
A strong greenback makes dollar-priced gold costlier for non-US investors.
"It looks like we are going to be heading a bit lower from here, from both the fundamental and technical points of view," INTL FCStone analyst Edward Meir said.
"The next support for gold prices is the Oct. 6 low and if it breaks that, next support is around $1,257. The key support lies around the $1,262.80 level and once it breaches that, it could spur more fund selling."
Spot gold may revisit its Oct. 6 low of $1,260.16 per ounce as it has broken a support zone of $1,271-$1,268, according to Reuters technical analyst Wang Tao.
Spot gold was roughly unchanged at $1,266.81 per ounce, as of 0543 GMT after touching its lowest since Oct. 6 at $1265.08. Gold was headed for an about 1 per cent weekly decline.
US gold futures for December delivery shed 0.2 per cent to $1,267.50.
"How gold finishes the week will now be entirely at the whim of the US dollar and US yields with little to no geopolitical safe haven premium left in the price," said Jeffrey Halley, a senior market analyst with OANDA, in a note.
The dollar stood tall on Friday, on track for weekly gains, while the euro slumped to three-month lows after the European Central Bank extended its bond purchases and reduced the chances that it would hike interest rates in 2018.
A strong greenback makes dollar-priced gold costlier for non-US investors.
"It looks like we are going to be heading a bit lower from here, from both the fundamental and technical points of view," INTL FCStone analyst Edward Meir said.
"The next support for gold prices is the Oct. 6 low and if it breaks that, next support is around $1,257. The key support lies around the $1,262.80 level and once it breaches that, it could spur more fund selling."
Spot gold may revisit its Oct. 6 low of $1,260.16 per ounce as it has broken a support zone of $1,271-$1,268, according to Reuters technical analyst Wang Tao.
