KHALEEJ TIMES, Monday, Mar 12, 2018 | Jamadi Al Thani 24, 1439
Gold inches lower, 22k priced at Dh150 in Dubai
Gold prices inched down on Monday pressured by a stronger equity market,
with the latest US jobs report easing fears of inflation and faster US rate
hikes, reviving risk appetite globally.
Spot gold edged lower 0.1 percent to $1,322.10 per ounce at 0734 GMT. US gold
futures for April delivery fell 0.1 percent to $1,322.60 per ounce.
Dubai gold prices are Dh160.25 for 24-karat and 22-karat can be bought for
"A rally in stocks has taken some shine from the precious metals ... Not much
fund is flowing into gold," said a Hong Kong-based trader.
Inflation worries faded after US data on Friday showed nonfarm payrolls jumped
by 313,000 jobs last month, but annual growth in average hourly earnings slowed
to 2.6 percent after a spike in January.
A relief rally swept across Asian share markets on Monday in the wake of the
Money market traders stuck to bets that the US Federal Reserve would raise
interest rates three times this year, with only around a one-in-four chance seen
for a fourth rate hike in 2018.
"The labour report that we saw in the US on Friday has spilled over into this
week ... Slowdown in the growth of wages last month has certainly eased concerns
about more aggressive rate hikes," said ANZ analyst Daniel Hynes.
Inflation concerns generally boost gold, which is seen as a safe-haven against
rising prices. But expectations the Fed could raise interest rates to fight
inflation make gold less attractive because it is not interest-yielding.
"We still are somewhat wary on gold short-term as we suspect that the precious
metal will struggle on account of a stronger dollar, which we expect to start
perking up as we head closer to the (next) Fed meeting," INTL FCStone analyst
Edward Meir said in a note. The central bank is due to meet from March 20.
Spot gold may revisit its March 9 low of $1,312.99 per ounce, as suggested by a
double-top and a retracement analysis, according to Reuters technical analyst
Meanwhile, speculators raised their net long position in gold by 4,178 contracts
to 161,812 contracts, Commodity Futures Trading Commission (CFTC) data showed.
Among other precious metals, silver was down 0.3 percent at $16.55 per ounce.
Palladium was 0.2 percent lower at $993.40 per ounce, while platinum fell 0.1
percent to $963.40 per ounce.