* Dollar falls to lowest since June 14
* Spot gold hits highest since June 26
* Gold may rise into $1,268-$1,277/oz – technicals
* Silver, platinum, palladium at over one-week highs
By Karen Rodrigues
BENGALURU, July 9 (Reuters) – Gold prices hit a near
two-week high on Monday as investors covered their short
positions and the dollar slipped to its weakest since mid-June,
while lingering U.S.-Sino trade tensions also supported the
bullion.
Spot gold was up 0.5 percent at $1,260.41 an ounce,
as of 0708 GMT, after touching its highest since June 26 at
$1,262.06.
U.S. gold futures for August delivery were 0.5
percent higher at $1,261.70 an ounce.
Gold is pushing higher on the dollar’s weakness in Asian
trading, said Tim Brown, trader at MKS PAMP Group, wrote in a
note.
The dollar index , which measures the greenback
against a basket of six major currencies, slipped to an over
three week low after U.S. jobs data showed slower-than-expected
wage growth.
The U.S. economy created more jobs than expected in June,
but steady wage gains pointed to moderate inflation pressures
that should keep the Federal Reserve on a path of gradual
interest rate increases this year.
A weak U.S. dollar makes greenback-denominated gold cheaper
for holders of other currencies.
“Some short covering has likely ensued given certainties
over the U.S.-Sino trade tensions on Friday. Still, the uptick
in risk appetite into the week may be short-lived if more trade
tariff threats are seen into the week ahead,” said OCBC analyst
Barnabas Gan.
The United States and China exchanged the first salvos in
what could become a protracted trade war on Friday, slapping
tariffs on $34 billion worth of each others’ goods and giving no
sign of willingness to start talks aimed at a reaching a truce.
President Donald Trump said on Thursday the United States
may ultimately impose tariffs on more than a half-trillion
dollars’ worth of Chinese goods.
“With the ongoing U.S.-Sino trade tensions, the resignation
of David Davis will likely be a side-show, though it may raise
some concerns amongst market-watchers depending on how the
overall Brexit issue progresses,” OCBC’s Gan added.
Brexit Secretary Davis resigned because he was not willing
to be “a reluctant conscript” to Prime Minister Theresa May’s
plans to leave the European Union, delivering a blow to the
British leader struggling to end divisions among her ministers.
Read more via PRECIOUS-Gold prices hit two-week high on short covering, weaker dollar | Reuters
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Kitco – Gold prices have pushed into positive territory after inflation pressures have officially hit the Federal Reserve’s target.
While analysts continue to wait for the ever-elusive short squeeze to breathe new life in the yellow metal, the market’s speculative short side continues to expand hitting new historical record on a weekly basis. Net speculative short positions have increased for seven consecutive weeks.
Landis Refining Industry News 