PT Solid Gold Berjangka | Gold Up On Weaker Dollar; Investors Await US Jobs Data
GOLD SOLID GOLD BERJANGKA, SG BERJANGKA , SOLID GROUP, PT SGB , SGB
Solid Gold Berjangka | Gold edged higher on Monday, supported by a weaker U.S. dollar, as investors awaited U.S. economic data due later in the week for clues on the Federal Reserve’s policy path.
Spot gold rose 0.6% to $3,293.55 an ounce by 2 p.m. EDT (1800 GMT) after hitting its lowest since May 29 earlier in the session. The metal rose for a second straight quarter, gaining 5.5%. U.S. gold futures settled 0.6% higher at $3,307.70.
“The weaker dollar today is providing a little bit of support. However, we are still in a well-established range that has dominated since mid-May,” said Peter Grant, vice president and senior metals strategist at Zaner Metals. The dollar weakened against the euro and the Swiss franc as markets weighed the prospect of a ballooning U.S. government deficit and the potential for a trade deal with major trading partners.
On the trade front, the US and China resolved issues over rare earth minerals and magnet shipments last week, renewing hopes for further talks between the two superpowers. Elsewhere, Canada scrapped its digital services tax targeting US tech companies late Sunday in a bid to revive stalled trade talks with the US.
Gold, traditionally seen as a hedge during times of uncertainty, also thrives in a low-interest-rate environment.
Investors now await US ADP jobs data, due on Wednesday, and initial jobless claims data on Thursday for clues on the central bank’s potential policy path. Citi analysts said in a note that they expect gold prices to consolidate between $3,100 and $3,500 in the third quarter of this year, noting that the late April peak of $3,500 may have already been a high as the gold market deficit nears its peak.
Spot silver fell 0.1% to $35.93 an ounce, while platinum fell 0.3% to $1,334.70, and palladium fell 3.2% to $1,097.24. All three metals are on track for gains this quarter. (alg)
Source: Reuters