• Gold prices fell on Tuesday as U.S. stock markets stabilized, easing fears of a deeper selloff, and the dollar strengthened, making bullion more expensive for users of other currencies.
• Gold had surged on Monday as falling U.S. share prices and fears of a global trade war pushed investors towards safer assets. But while European stock markets continued to fall, led by technology shares, Wall Street rebounded.
• Spot gold dropped 0.6 percent to $1,333.09 per ounce by 1:35 p.m. EDT (1735 GMT), after rising 1.3 percent on Monday.
• U.S. gold futures for June delivery settled down $9.60, or 0.7 percent, at $1,337.30 per ounce.
• "Gold has given back some of its sharp gains from yesterday. As well as a slightly positive tone in the stock markets, the dollar has rebounded against both the euro and the yen," said Forex.com market analyst Fawad Razaqzada.
"The potential for a dollar rally is there this week, with Friday’s jobs report being the key event risk. Should the greenback regain its poise then gold could come under further pressure."
• Gold has struggled to break from a $1,300-$1,360 per ounce trading range since the start of the year.
• "It's going to take a significant trigger to push it beyond this range," said Danske Bank analyst Jens Pedersen.
• One potential trigger is a trade dispute between the world's two largest economies, with the Trump administration expected this week to unveil a list of advanced technology Chinese imports targeted for U.S. tariffs after Beijing raised tariffs on 128 U.S. products.
• Gold is often used as a safe place to park assets during times of financial or political uncertainty.
• Funds have raised their bets on higher prices.
• Speculative investors have room to expand their long positions further, which would help drive prices higher, analysts at Citi said in a note.
• Higher market volatility and rising tension between Washington and Beijing will likely hold gold prices above $1,300 per ounce throughout 2018, they said.
• "We assign a 30 percent probability that gold prices can scale $1,400 an ounce this year."
• Momentum indicators suggested gold prices would rise, with technical Fibonacci support at $1,317.25 and resistance at $1,361.80, analysts at ScotiaMocatta said in a note.
• Meanwhile, spot silver shed 1.1 percent to $16.42 an ounce after rising 1.8 percent in the previous session.
• Platinum dropped 0.3 percent to $926.60 an ounce, earlier hitting $912, its lowest since Dec. 26.
• Palladium lost 0.7 percent at $928.25 an ounce after touching $927.25, its lowest since Oct. 10.
Reference: Reuters
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