London — Gold drifted lower on Thursday, pressured by a firmer dollar as investors waited for signals about interest rates from a central bankers meeting in Jackson Hole. Losses were limited, however, after threats by US President Donald Trump to shut down the government unless he got funding for a border wall with Mexico. Key to the direction of the market were funds holding huge long positions in Comex gold futures, said Ole Hansen, head of commodity strategy at Saxo Bank in Copenhagen. "We’ve had two failed attempts at the upside this year which resulted in a flush out of longs, and the longer we stay here without breaking higher, the bigger the risk that these guys will start to get impatient," he said. Gold failed in both April and June to break through the top of its broad $1,200-$1,300 range in 2017. "But at the same time, there’s this threat to close down the US government by Trump if he doesn’t get his wall so that’s providing some underlying support. It’s well and truly wa...
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