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BENGALURU - 28 July 2017: Gold steadied on Friday after
retreating from a more than six-week high hit in the previous
session, with investors looking for cues on the health of the
U.S. economy from second-quarter gross domestic product data due
later in the session.
A recovery in the world's biggest economy would give the
beleaguered dollar some respite from the recent sell-off, and
also dent the likelihood for higher interest rates which
benefits non-interest yielding and safe-haven gold.
"Our feeling is that the (GDP) number will be in line to
somewhat below the 2.8 figure forecast, in which case we could
see another modest advance in gold," said INTL FCStone analyst
Edward Meir.
"We expect to see a lot of action around the second-quarter
GDP number."
Spot gold were mostly unchanged at $1,259.10 per
ounce at 0656 GMT, and was up slightly this week in what could
be the precious metal's longest spell of weekly gains since May.
U.S. gold futures for August delivery fell 0.1
percent to $1,258.50 per ounce.
The dollar index was nearly unchanged at 93.816
against a basket of six major currencies.
"I think it is more important to keep an eye on the dollar
and whether it continues to support gold," said Ronald Leung,
chief dealer at Lee Cheong Gold Dealers in Hong Kong.
A weaker dollar makes bullion cheaper for non-U.S.
investors. Higher interest rates would push yields up and likely
boost the dollar.
Meanwhile, holdings at the SPDR Gold Trust , the
world's largest gold-backed exchange-traded fund, fell 0.45
percent to 791.88 tonnes on Thursday from 795.42 tonnes on
Wednesday.
Spot gold is biased to break a support and fall more into a
zone of $1,243.41-$1,247 per ounce, following its failure to
break the resistance at $1,264, according to Reuters technical
analyst Wang Tao.
Among other precious metals, silver rose 0.1 percent
to $16.54 per ounce, heading for a third weekly gain.
Platinum rose 0.2 percent to $924.25 per ounce but
was on track for its first weekly decline in three.
Palladium fell 0.1 percent to $871.25 per ounce. In
the previous session, palladium hit its highest in over a month.
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