Precious Gold Climbs up from Four-Month Low

Gold, after hitting its lowest price in the last four months in the previous session, rose today on the back of a stronger US dollar to its lowest level this year. Chinese buyers returned to the market after the Labor Day holiday yesterday, which also affected the gold price.

Spot gold rose 0.5 percent at $1.310.30 an ounce. In the last session, it fell to $1,301.51— its lowest since December 28 of the previous year.

US gold futures for June delivery also climbed 0.3 percent to $1,310.80 per ounce on Wednesday.

Other precious metals also climbed up. Spot silver gained 1.14 percent to $16.30, versus its previous price at $16.04 per ounce; Platinum was up 0.5 percent at $894 per ounce. It reached its lowest this year at $888.50 on Tuesday; and palladium rose 0.1 percent to $949.22 per ounce.

The dollar index is still steady near a four-month high at 92.446, with the help of a surging US economy and rising yields amid signs of slowdown elsewhere, particularly in Europe.

Peter Fung, head of dealing at Wing Fung Precious Metals, said, “The Chinese are back from a long holiday and we’re seeing some buying interest on the downside.”

He added that the gains should be limited as the dollar was steady and as people awaited the US non-farm payrolls data.

Fed Talks

Meanwhile, investors awaited cues on the US monetary policy from the Federal Reserve’s two-day meeting.

The Federal Reserve is set to hold interest rates steady this week but will likely further encourage expectations that it will lift borrowing costs in June on the back of rising inflation and low unemployment.

The central banking system’s decision is to be announced today at 6pm UTC +0.

The US April nonfarm payrolls report, due on Friday, can show further signs of economic strength— making investors emphasize on it.

Wang Tao, a technical analyst, said that spot gold could end its current bounce below a resistance at $1,317 and then retest a support at $1,302, basing on a Fibonacci ratio analysis.

On the other hand, SPDR Gold Trust holdings, the world’s biggest gold-backed exchange-traded fund, slipped 0.51 percent to 866.77 tons yesterday.

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