Precious metal, Gold, on Monday, July 31, hit its highest in almost seven weeks on, buoyed by a struggling dollar.
Spot gold was down 0.1 percent at $1,267.7 an ounce at 1337 GMT from an earlier $1,270.98, its highest since June 14. It is on course for a two percent rise this month. U.S. gold futures fell 0.1 percent to $1,267.1 an ounce.
“Dollar weakness is driving the gold price. It’s not just against the euro, it’s against most major currencies,” said Commerzbank analyst Eugen Weinberg. “U.S. politics is a mess and
U.S. data has not been inspiring.”
A U.S. currency near 13-month lows against a basket of currencies makes dollar-denominated gold cheaper for holders of other currencies, which could mean stronger demand.
Analysts said decelerating wage growth and subdued inflation have weakened the case for another rate rise this year. The Fed has raised rates twice this year.
Gold prices in India last week recorded the biggest discount in seven months as a rebound in prices curtailed retail demand, while lower premiums in other Asian centres failed to
lure customers amid a seasonal slowdown.
On the technical front, upside resistance comes in at $1,275, a Fibonacci retracement level. A break above that could see gold making a move towards the year high above $1,295.
Elsewhere, silver gained 1 percent to $16.83 an ounce, palladium rose 1.6 percent to $891.22 and platinum climbed 0.9 percent to $937.30.
Demand for platinum used in autocatalysts could come under pressure due to a push towards electric cars powered by rechargeable batteries and away from vehicles with internal combustion engines that use diesel.
