Bengaluru. — Gold slipped yesterday as the dollar recovered a bit from a three-week low hit in the previous session, but geopolitical concerns about North Korea and nervousness ahead of the French presidential election lent support to the safe-haven asset. Spot gold was down 0,2 percent to $1 286,40 per ounce as of 3.14am GMT. The metal hit its highest since early November at $1 295,42 on Monday before closing lower, and rose 0,4 percent on Tuesday. US gold futures were down 0,4 percent at $1 288,80.
US Vice-President Mike Pence on Tuesday reassured Japan of US commitment to reining in North Korea’s nuclear and missile ambitions, after warning that US strikes in Syria and Afghanistan showed the strength of its resolve.
“The whole situation for gold is more than optimistic because of the geopolitical tensions aroused by North Korea and with the interest rate hike expectations coming down,” said Mark To, head of research at Hong Kong’s Wing Fung Financial Group.
“The trading range from $1 200-$1 250 over the past few weeks has been broken convincingly . . . We see $1 280 as the gravity around which the trading range will be built and prices will move between $1 270-$1 310.”
The dollar index edged up, but was hovering near a three-week low on disappointing US housing starts data and nervousness over trade talks between the US and Japan.
In France, investors remained nervous ahead of the first round of the country’s presidential election this Sunday, even though an opinion poll put centrist Emmanuel Macron first, just ahead of far-right, anti-euro candidate Marine le Pen. — Reuters.