PRECIOUS-Gold slips as firmer dollar, recovery hopes dent appeal

  • Reuters
  • Commodities News
PRECIOUS-Gold slips as firmer dollar, recovery hopes dent appeal
Credit: © Reuters.

(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.

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  • John Greeff @John Greeff
    That would be nice but more likely 1650
    Like 0
  • Malcolm Mkhize @Malcolm Mkhize
    price to reach 1600
    Like 1