Thursday, 15 November 2018

Gold prices hold steady as dollar eases



Gold prices held steady on Thursday, after rising nearly a percent in the previous session, as the dollar retreated further from a 16-month peak against a basket of currencies.

FUNDAMENTALS

Spot gold was little changed at $1,210.65 per ounce at 0055 GMT.

US gold futures were flat 0.1 percent at $1,203 per ounce.

The dollar index, which measures the greenback against a basket of six major currencies, was down about 0.1 percent, nudged down by firmer pound and euro.

British Prime Minister Theresa May won the backing of her senior ministers for a draft European Union divorce deal on Wednesday, freeing her to tackle the much more perilous struggle of getting parliament to approve the agreement.

Italy re-submitted its draft 2019 budget to the European Commission with the same growth and deficit assumptions as a draft rejected for breaking European Union rules, stepping up its showdown with the EU over its fiscal policy.

US consumer prices increased by the most in nine months in October amid gains in the cost of gasoline and rents, pointing to steadily rising inflation that likely will keep the Federal Reserve on track to raise interest rates again next month.

Fed Chair Jerome Powell said the introduction of press conferences after every Federal Reserve meeting next year means all meetings are now "live" for possible rate increases.

China has delivered a written response to US demands for wide-ranging trade reforms, three US government sources said on Wednesday, a move that could trigger negotiations to bring an end to a withering trade war between the world's top economies.

Paulson & Co, led by longtime gold bull John Paulson, kept its stake in gold investments during the third quarter of 2018 while other heavyweights including Soros Fund Management LLC, Jana Partners LLC and Caxton Corp remained unexposed to the metal.

Pan American Silver Corp said Wednesday it has agreed to buy Tahoe Resources Inc in a $1.07 billion cash and stock deal that would create a top global silver miner but also include some troublesome assets.

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Source: MoneyControl

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