Live
- Mangaluru police nab babitual offender in Ullal
- Alternative learning redefining education system in India: Sonam Wangchuk
- Rich tributes paid to freedom fighter Narasayamma
- Actor Ali Issued Notices Over Unauthorized Farmhouse Construction
- Mangaluru airport bids adieu to CISF canine Hero Jack
- Congress clinches landmark victory
- AP Chambers to unveil State’s biz potential
- CM Revanth Reddy Expresses Condolences on the Demise of Former MLA Uke Abbayya
- HSL bags two SODET Awards
- BJP increases vote share
Gold ticks higher, but more losses expected
Gold recovered from a two-week low on Wednesday as speculators locked in some profit from recent losses, but some analysts expect further weakness due to easing political risks.
LONDON: Gold recovered from a two-week low on Wednesday as speculators locked in some profit from recent losses, but some analysts expect further weakness due to easing political risks.
Spot gold was up 0.1 percent at $1,264.40 at 1005 GMT. Earlier in the session, prices hit a low of 1,260.90, their weakest since April 11.
U.S. gold futures edged down 0.1 percent to 1,265.80.
Gold has shed about 3 percent since touching a five-month peak on April 17.
"It's either profit taking from those who went short or bargain hunting from people who think the fall was too much, but I wouldn't say there's any strong fundamental reason behind it," said analyst Carsten Menke at Julius Baer in Zurich.
"You had a decent set of risk factors that supported gold over the past few weeks and I'd argue that most of them are priced out of the market again and that's why we believe that prices should reach $1,200 over the next three months."
Concern has ebbed about French politics after centrist presidential candidate Emmanuel Macron came in first in the initial round of voting while the threat of a U.S. government shutdown has also receded, diminishing the appeal of gold as a safe haven asset.
Gold also was hit by increased appetite for risky assets, with world stocks hitting a record high on Wednesday after strong earnings and the prospect of tax cuts for corporate America.
"Over the past two sessions, the momentum for gold to move ahead has actually faded away. We can see that risk appetite has increased after the easing situation in North Korea and French election results," said Mark To, head of research at Hong Kong's Wing Fung Financial Group.
"We have to move back to the original gravity of trading range of $1,200-$1,250."
U.S. President Donald Trump is proposing to slash the corporate income tax rate and offer multinational businesses a steep tax break on overseas profits brought into the United States, officials said late on Tuesday.
Holdings of SPDR Gold Trust, the world's largest gold-backed exchange-traded fund, fell 0.69 percent to 854.25 tonnes on Tuesday after 6 tonnes of inflows.
Spot silver was flat at $17.55 an ounce after hitting over one-month low of $17.49.
Platinum fell 0.1 percent to $949, while palladium added 0.1 percent to $801.50.
