• Gold prices hit their lowest in over a week on Tuesday, as a lull in geopolitical tensions spurred a pick-up in investor appetite for riskier assets such as equities.
Spot gold dipped 0.1 percent to $1,325.11 an ounce by 0615 GMT, after earlier touching its lowest since Sept. 1 at $1,322.85.
• “The lack of an expected North Korean missile launch, and expectations that Hurricane Irma will have less of an impact than previously anticipated led to a rekindling of ‘risk-on’ sentiment,” said John Sharma, economist at National Australia Bank.
“We expect continued - although somewhat restrained - demand for gold due to continued economic and geopolitical uncertainty, which should keep gold slightly above $1,300/oz in the near future,” Sharma added.
• Spot gold may drop to $1,317 per ounce, as it has broken support at $1,332, said Reuters technical analyst Wang Tao.
• “We suspect that the dollar rally could have more room to run ... we could see a retracement in the precious metal to around $1,310-$1,315 before an element of underlying support sets in,” INTL FCStone analyst Edward Meir said in a note.
• However, analysts at Bank of America Merrill Lynch said in a note on Monday that the U.S. currency could remain supportive for gold, with the precious metal on track to hit its $1,400 per ounce target in coming months.
In other precious metals, silver was down 0.2 percent at $17.77 an ounce after having earlier hit its lowest since Sept.
Reference: Reuters
Thai
Eng