Gold prices advanced on Wednesday, May 2, recovering from a four-month low hit in the previous session, as Chinese buyers returned to the market following the Labour Day holiday.
Spot gold was up 0.5 percent at $1,309.71 per ounce at 0653 GMT. Gold fell to $1,301.51 in the previous session, its lowest since Dec. 29, 2017, Reuters reports.
U.S. gold futures for June delivery rose 0.31 percent to $1,310.80 per ounce on Wednesday.
“The Chinese are back from a long holiday and we’re seeing some buying interest on the downside,” said Peter Fung, head of dealing at Wing Fung Precious Metals.
But gains should be limited as the dollar is firm and as people are waiting for U.S. non-farm payroll data, added Fung.
The dollar index was down about 0.1 percent at 92.357, but the greenback hovered close to a near four-month high of 92.566.
Spot gold may end its current bounce below resistance at $1,317 per ounce and then retest support at $1,302, as suggested by a Fibonacci ratio analysis, according to Reuters technical analyst Wang Tao.
Meanwhile, holdings of SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, fell 0.51 percent to 866.77 tonnes on Tuesday.
Among other precious metals, spot silver rose 1.3 percent to $16.32 per ounce. Prices touched a more than four-month low of $16.04 in the previous session.
Platinum was up 0.9 percent at $898.05 per ounce. The metal touched its lowest this year at $888.50 on Tuesday. Palladium climbed 0.5 percent to $953.30 per ounce.
