PRECIOUS-Gold slips as firmer dollar, recovery hopes dent appeal
(Recasts, adds comments, updates prices)
* Markets eye Biden's infrastructure spending plans on Wednesday
* Dollar firms near multi-month peak
* Palladium fell as much as 4.4% in the session
* Russia's Nornickel halts water inflow at two major mines
By Brijesh Patel
March 29 (Reuters) - Gold prices slipped on Monday as a stronger U.S. dollar and hopes for a swift global economic recovery dented demand for safe-haven bullion.
Spot gold XAU= was down 0.4% at $1,725.50 per ounce by 1201 GMT. U.S. gold futures GCv1 fell 0.5% to $1,724.50.
"Gold is suffering a little bit on back of a firmer greenback and slightly stronger equity market. We are also seeing some end-of-the-month profit-taking," said CMC Markets UK's chief market analyst, Michael Hewson.
"As we head into the end of the month and quarter, gold is not going to move that much even though U.S. yields are slightly softer," Hewson said, adding he sees gold range-bound between $1,680 and $1,760 per ounce.
The dollar index .DXY held firm near four-month highs against its rivals. Gold's safe-haven demand was also hurt as investors' appetite for riskier assets grew. USD/ .EU
Market participants are now waiting for U.S. President Joe Biden's infrastructure spending package on Wednesday, which is speculated to be in the $3 trillion to $4 trillion range. investors view gold as a hedge against higher inflation that could follow stimulus measures, but a recent spike is U.S. Treasury yields has weighed on the non-yielding commodity. US/
"We see virtually no scope for noticeably higher prices until mid-year, though gold should be able to make significant gains in the second half of the year," Commerzbank (DE: CBKG ) analysts wrote in a note.
"Gold is currently lacking the support of financial investors, as buying interest is low." GOL/ETF palladium XPD= dropped as much as 4.4% to $2,557.44 per ounce to a one-week low in the session.
Russia's Nornickel Nickel GMKN.MM , the top producer of palladium, on Monday said it had stopped water flowing into its two major mines in the Siberian Arctic and both were on track to fully resume production in the coming months. XPT= was down 0.5% at $1,179 per ounce and silver XAG= fell 0.9% to $24.81.
Add Chart to Comment
We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind:
- Enrich the conversation
- Stay focused and on track. Only post material that’s relevant to the topic being discussed.
- Be respectful. Even negative opinions can be framed positively and diplomatically.
- Use standard writing style. Include punctuation and upper and lower cases.
- NOTE: Spam and/or promotional messages and links within a comment will be removed
- Avoid profanity, slander or personal attacks directed at an author or another user.
- Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
- Only English comments will be allowed.
Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.
That would be nice but more likely 1650Like 0
price to reach 1600Like 1
Drop an image here or Supported formats: *.jpg, *.png, *.gif up to 5mb
Drop an image here or