Gold edges up on the day but rate-hike possibilities weigh on the market
SPDR Gold holdings were down 0.6% on Tuesday, as gold heads for its fifth consecutive month of declines; palladium is down after Tuesday’s seven-week high
London — Gold climbed on Wednesday as funds bet prices would find short-term support at $1,200 an ounce, but a stronger dollar and expectations for increases in US interest rates limited gains. Spot gold was up 0.1% at $1,204.43 an ounce at 10.50am GMT. Prices hit their highest since August 10 at $1,214.28 on Tuesday, but closed 0.8% lower as US treasuries rose after the US and Mexico struck a trade deal. Analysts and traders are closely watching the psychologically important level of $1,200. Gold dipped below that this month for the first time since March 2017, giving it momentum to touch a low of $1,159.96. "Gold is a tad higher now because we have managed to find support at $1,200 and that is attracting some intra-day bids at this stage," said Saxo Bank analyst Ole Hansen. "The market is more balanced than we have seen recently but we are still one spark short of a sustained rally here." Gold is still pinned down by a stronger dollar, which makes commodities it is priced in more ...
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