Gold eases as dollar holds near multi-month high
* Silver matches its lowest since Jan. 21, 2016
* GRAPHIC-Gold/silver ratio: http://tmsnrt.rs/1UXSq7n
* SPDR Gold Trust holdings fell on Tuesday
By Sumita Layek
Nov 14 (Reuters) - Gold prices fell on Wednesday as the
dollar held near a multi-month high buoyed by interest from
investors seeking cover from sliding stocks and by prospects for
higher U.S. interest rates.
Spot gold was down 0.1 percent at $1,201.08 per ounce
at 1251 GMT. Prices had slipped to their lowest since Oct. 11 at
$1,195.90 in the previous session.
U.S. gold futures were flat at $1,201.4 per ounce.
"The continuing dollar strength is weighing on gold. What
people are doing is selling everything to buy the dollar and
that includes gold," said Alasdair Macleod, head of research at
The dollar index, a gauge of its value versus major
currencies, was firm near a 16-month high, after retracing
slightly earlier in the session as investors took profits
prompted by gains in the euro and sterling on growing confidence
about a draft Brexit deal.
The British cabinet will meet at 1400 GMT to consider the
Meanwhile, stocks fell on worries about a slowdown in global
Gold, usually considered a safe investment during times of
political or economic uncertainty, has fallen about 12 percent
from a peak in April as investors flocked to the dollar instead,
with U.S.-China trade friction unfolding against a background of
higher U.S. interest rates.
Market participants will also be keeping an eye on Federal
Reserve Chairman Jerome Powell's appearance in the Federal
Reserve Bank of Dallas Global Perspective Speaker Series at 2300
GMT for clues on the U.S. monetary policy outlook.
The dollar has benefited over the last week from
expectations of further U.S. rate hikes.
"Gold is likely to be range bound for the reminder of the
year ... a sustained rally doesn't appear to be the emphasis,"
said Capital Economics analyst Ross Strachan.
Spot gold may bounce to $1,211 per ounce, as it has found a
support around $1,195, said Reuters technical analyst Wang Tao.
Meanwhile, holdings of the world's largest gold-backed
exchange-traded fund, SPDR Gold Trust, fell 0.11 percent
to 761.16 tonnes on Tuesday. The holdings, however, remained
near their highest level in more than two months.
Among other precious metals, silver was unchanged at
$13.98 per ounce, having matched its lowest since Jan. 21, 2016,
"Silver tends to be a more volatile mover than gold, so when
gold gets down, silver gets down even faster," GoldMoney.com's
Palladium fell 0.1 percent to $1,109.20 per ounce,
while platinum was down 0.8 percent at $828.50 an ounce.
(Reporting by Sumita Layek and Arpan Varghese in Bengaluru;
editing by Mark Potter and Jason Neely)
First Published: 2018-11-14 03:16:12
Updated 2018-11-14 15:01:32
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