Gold hovers near 2-wk high on tepid U.S

Marco Green
March 15, 2019

Spot gold, the price at which the metal is traded in the worldwide stock market, was up by 0.3 percent to $1,305.21 an ounce.

Gold hit almost a two-week high on Wednesday as tepid United States economic data reinforced views the Federal Reserve would be patient on monetary policy, with bullion's appeal also bolstered by uncertainty over a Brexit deal ahead of a key vote.

USA consumer prices rose for the first time in four months in February.

"Weaker inflation data keeps the Fed's potential to raise rates on the back-burner".

"We are optimistic on gold in long-term perspective".

Gold prices hit a two-week high on Wednesday amid uncertainty over Brexit as well ongoing U.S.

The US dollar fell compared with major currencies following the data, bolstering appeal for bullion.

However, analysts said the metal may soon have a turn of fortune on expectations that the U.S. Federal Reserve would refrain from raising interest rates after their policy meeting next week.

Lower interest rates reduce the opportunity cost of holding non-yielding bullion and weigh on the dollar.

"There was a bit of move out of the dollar that lifted gold slightly", said Kyle Rodda, a market analyst with IG Markets in Melbourne, adding there is also increased risk appetite in the market which is capping gold's gains.

British lawmakers voted by a margin of 43 to confirm their decision to reject any no deal Brexit.

US gold futures also dipped 0.8 percent, to $1,298.30 an ounce.

Gold is facing stiff resistance at the $US1,300 mark, having failed to significantly break above the key psychological ceiling, despite recent momentum on the back of the United States dollar's declines fuelled by weak U.S. jobs data and modest retail sales in January.

On the technical front, gold may retest a resistance at $1,301, a break above which could lead to a gain into the range of $1,307 to $1,313, according to Reuters analyst Wang Tao.

As for other precious metals, silver for May delivery was up 13.9 cents, or 0.91 percent, to close at 15.413 dollars per ounce.

Silver slipped for the first time in five sessions and was down almost 2 percent at $15.15 per ounce.

Other reports by Click Lancashire

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