Gold steadies off one-week high on dollar rebound


Silver, platinum bound for weekly gains


COVID cases spike in top gold consumer China

By Seher Dareen

Nov 25 (Reuters) - Gold prices were steady below a one-week high hit on Friday as the U.S. dollar firmed, but the non-yielding metal looked set to eke out only a small weekly gain on expectations the U.S. Federal Reserve would scale back its rate-hiking stance.

Spot gold XAU= was little changed at $1,754.94 per ounce by 2:00 p.m. ET (1900 GMT). Prices hit a session high of 1,761.17 an ounce earlier and eyed a 0.3% rise for the week.

U.S. gold futures GCv1 settled up 0.5% at $1,754.

With bullion tracking the dollar and low-volume trading, "it's not going to take much to move the market in either direction and probably going to continue to see more of the same throughout the day," said Jim Wyckoff, senior analyst at Kitco Metals.

The dollar .DXY gained 0.2%, making greenback-priced gold more expensive for overseas buyers.

World's top gold consumer China on Friday reported a new daily record for COVID-19 infections, as cities across the country continued to enforce curbs to control outbreaks.

"The COVID situation in China doesn't appear to be getting any better, so that's going to be a front burner issue for the marketplace, not only gold, but for all the markets here for the next couple of weeks," Wyckoff highlighted.

This year's high interest rate hikes from the U.S. Fed have kept a leash on non-yielding gold's traditional status as a hedge against inflation and other uncertainties.

However, traders now expect a smaller 50 bps rate increase at the December meeting after the U.S. central bank's last policy meeting minutes signalled slower pace of interest rate hikes. FEDWATCH "Technically speaking, we failed to break through resistance levels ... so now we're potentially looking for support that's a little lower, closer to $1,730," said Bart Melek, head of commodity markets strategy at TD Securities.

Silver XAG= was little changed at $21.52 and platinum XPT= inched 0.7% lower to $980.71, both due for weekly rises.

Palladium XPD= dipped 1.4% to $1,854.47, heading lower for the week.
Reporting by Seher Dareen in Bengaluru; Editing by Krishna Chandra Eluri

Disclaimer: The XM Group entities provide execution-only service and access to our Online Trading Facility, permitting a person to view and/or use the content available on or via the website, is not intended to change or expand on this, nor does it change or expand on this. Such access and use are always subject to: (i) Terms and Conditions; (ii) Risk Warnings; and (iii) Full Disclaimer. Such content is therefore provided as no more than general information. Particularly, please be aware that the contents of our Online Trading Facility are neither a solicitation, nor an offer to enter any transactions on the financial markets. Trading on any financial market involves a significant level of risk to your capital.

All material published on our Online Trading Facility is intended for educational/informational purposes only, and does not contain – nor should it be considered as containing – financial, investment tax or trading advice and recommendations; or a record of our trading prices; or an offer of, or solicitation for, a transaction in any financial instruments; or unsolicited financial promotions to you.

Any third-party content, as well as content prepared by XM, such as: opinions, news, research, analyses, prices and other information or links to third-party sites contained on this website are provided on an “as-is” basis, as general market commentary, and do not constitute investment advice. To the extent that any content is construed as investment research, you must note and accept that the content was not intended to and has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such, it would be considered as marketing communication under the relevant laws and regulations. Please ensure that you have read and understood our Notification on Non-Independent Investment. Research and Risk Warning concerning the foregoing information, which can be accessed here.

We are using cookies to give you the best experience on our website. Read more or change your cookie settings.

Risk Warning: Your capital is at risk. Leveraged products may not be suitable for everyone. Please consider our Risk Disclosure.