• Gold has fallen one per cent as the US dollar and stocks have gained, though tensions over North Korea and upcoming French and UK elections underpinned demand in the safe-haven asset.
• Spot gold fell as low as $US1,275.73 per ounce, and was last trading down 0.8 per cent at $US1,279.54 by3:24 pm Wednesday EDT (0524 Thursday AEDT).
• Gold prices were ending the U.S. day session lower Wednesday. Risk aversion in the world marketplace has receded a bit at mid-week and that’s a negative for the safe-haven metal. The outside markets were bearish for the precious metals on this day as the U.S. dollar index was higher and crude oil prices were lower. Generally higher world stock markets Wednesday also worked against the gold market. Some chart consolidation and profit-taking from the shorter-term futures traders were featured in gold and silver markets after both scored five-month highs earlier this week. June Comex gold was last down $10.70 an ounce at $1,283.40. May Comex silver was last down $0.077 at $18.195 an ounce.
• Gold settled lower on Wednesday, extending its decline following the release of a “moderately” positive Federal Reserve’s Beige Book.
• The Federal Reserve (Fed) said on Wednesday that the U.S. economy grew at a modest-to-moderate pace between mid-February and the end of March, with inflation pressures remaining in check.
• The dollar index advanced 0.3% while European shares rose. However, gold’s losses were capped by uncertainties over elections and geopolitical tensions.
• US Vice President Mike Pence said Washington would work with its allies and China to put economic and diplomatic pressure on North Korea but added America would defeat any attack with an "overwhelming response." "Investors are still using gold for insurance and defensive positioning because there are concerns over equity valuations and politics," said ETF Securities analyst Martin Arnold.
• In France, investors remained nervous ahead of the first round of the presidential election on Sunday. A closely-watched poll showed the first round of voting was too close to call, although centrist Emmanuel Macron remained favourite to win.
• British Prime Minister Theresa May’s call for a snap general election added to a list of uncertainties for investors.
• Wing Fung Financial Group’s head of research Mark To said he expected gold prices to hover near $1,280, trading in a range between $1,270 and $1,310. MKS PAMP Group trader Sam Laughlin said gold should find support around $1,280 and $1,276, and was well positioned to test $1,300.
• Technically, June gold futures prices closed near mid-range and saw profit taking. Prices are still in a five-week-old uptrend on the daily bar chart. The gold bulls still have the overall near-term technical advantage. Gold bulls' next upside near-term price breakout objective is to produce a close above solid technical resistance at $1,300.00. Bears' next near-term downside price breakout objective is pushing prices below solid technical support at $1,260.00. First resistance is seen at today’s high of $1,292.70 and then at this week’s high of $1,297.40. First support is seen at today’s low of $1,275.40 and then at 1,268.10. Wyckoff's Market Rating: 6.5
Reference: Business News, Kitco, Reuters
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