Home / DAILY COMMODITY MARKET STRATEGY - 6 Mar 2017
Sunday, 5 March 2017
DAILY COMMODITY MARKET STRATEGY - 6 Mar 2017
Gold steadies on safe-haven buying, weaker dollar
Gold held steady early on Monday, supported by safe haven buying amid rising geopolitical tensions over North Korea and a weaker dollar. Investors are closely watching developments after the reclusive state fired fired four ballistic missiles into the sea off Japan's northwest coast, days after it promised retaliation over U.S.-South Korean military drills.
"We expect gold to trade with a bid tone in early Asia on safe-haven flows, following a series of North Korean missile launches this morning,"
The dollar also dipped in Asian trading, as investors locked in gains after the greenback's rise last week on growing expectations of a U.S. interest rate hike this month. The dollar index was down 0.2 percent to 101.39.
Spot gold was little changed at USD1,234.20 per ounce at 0215 GMT. The metal had hit USD1,222.51, the lowest since Feb. 15, in the previous session on signals of a hike in U.S. interest rates this month.
U.S. gold futures were up 0.7 percent to USD1,234.6.
The U.S. Federal Reserve's long-stalled 'liftoff' of interest rates may finally get airborne this year as policymakers from Chair Janet Yellen to regional leaders across the United States signaled that the era of easy money is drawing to a close.
Spot gold may revisit its March 3 low of USD1,222.51 per ounce, as its drop from the Feb. 27 high of USD1,263.80 has not completed, according to Reuters technical analyst Wang Tao.
In other precious metals, spot silver fell 0.5 percent to USD17.87 per ounce, while platinum inched lower by 0.1 percent, to USD993.50.