PRECIOUS-Gold steadies above 5-week lows as market rally pauses

A list of stock prices rising and declining in value
Credit: Shutterstock photo

(Adds comment, updates prices)

* SPDR gold holdings down 2.7 pct this year

* Gold expected to hover above $1,283/oz support level -analyst

By K. Sathya Narayanan

March 6 (Reuters) - Gold prices steadied on Wednesday, afterrecovering from a more than five-week low in the previoussession, supported by a pause in global equities' rally, while afirmer dollar curbed gains.

Spot gold XAU= was steady at $1,286.75 per ounce, as of0528 GMT, after slipping to $1,280.70 in the previous session,its lowest since Jan. 25.

U.S. gold futures GCv1 were up about 0.3 percent at$1,287.90 per ounce.

Asian stocks held their ground on Wednesday as Chineseequities soared on stimulus hopes, although a resurgence inregional tensions capped broader gains. MKTS/*:nB9N20602L

"Gold is firming after the sharp fall as competinginfluences of the interest bearing assets are reversing. Bondyields have started to weaken gently, and while the dollar isgoing up, equities are seeing headwinds," said Benjamin Lu, ananalyst with Singapore-based Phillip Futures.

"Gold in longer term is very much supported, partially dueto shift in sentiments and global slowdown. In the shorter term,gold continues to show signs of bearish weakness and there issome room to go further south before it resumes its positivetrend."

The dollar index .DXY held near a two-week high hit in theprevious session. USD/

Markets were a bit cautious over the Sino-U.S. trade disputeand are awaiting developments in talks between the two majoreconomies after a tit-for-tat tariff war, analysts said.

U.S. Secretary of State Mike Pompeo said President DonaldTrump will reject any trade deal that is not perfect but thatthey will still keep working on an agreement rekindling concernsin the market.

While a series of robust data from the United States hasstrengthened the dollar, the Federal Reserve's patience onpolicy is nowhere close to running out.

Markets will now look ahead to the European Central Bank'smonetary policy meeting on Thursday and U.S. non-farm payrollsdata on Friday.

On the technical front, gold is expected to hover above asupport at $1,283 per ounce, as it seems to be stabilisingaround this level, according to Reuters analyst Wang Tao. TECH/C

However, gold continues to see downwards pressure fromoutflows in exchange traded funds and a firmer dollar, MKS PAMPGroup said in a note.

Holdings of SPDR Gold TrustGLD , the world's largestgold-backed exchange-traded fund, dropped 2.7 percent so farthis year. GOL/ETF

Among the other precious metals, palladium XPD= slipped0.4 percent to $1,509.40 per ounce.

Spot silver XAG= lost 0.3 percent to $15.08 per ounce,after slipping to its lowest since Dec. 27 in the previoussession, while platinum XPT= dipped 0.8 percent to $830.65 perounce.

(Reporting by K. Sathya Narayanan in Bengaluru, Editing bySherry Jacob-Phillips) ((; within U.S. +1 651 8485832, outside U.S. +91 80 6749 3226/1298; Reuters

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

In This Story


Other Topics



Reuters, the news and media division of Thomson Reuters, is the world’s largest international multimedia news provider reaching more than one billion people every day. Reuters provides trusted business, financial, national, and international news to professionals via Thomson Reuters desktops, the world's media organizations, and directly to consumers at and via Reuters TV.

Learn More