Gold prices slumped on Thursday, April 19, weighed down by a firmer dollar and a decline in global
geopolitical tensions, breaking a string of gains for four successive sessions.
Spot gold was down 0.2 percent at $1,346.60 per ounce by 1015 GMT, while U.S. gold futures fell 0.3 percent to $1,349.90 per ounce.
“Uncertainty has decreased somewhat. Geopolitical worries, trade risk have moved to the background,” said commodity strategist Georgette Boele at ABN AMRO in Amsterdam.
U.S. President Donald Trump said on Wednesday he hoped an unprecedented summit with North Korean leader Kim Jong Un would be successful while Western missile strikes in Syria were less extensive than some had feared.
Boele said she expected gold to decline to around $1,330 after failing to break above resistance.
“There was a bit of upward momentum, but you are still the $1,300-$1,365 range. It’s more of a technical trade at the moment – it tries the upside again and if that doesn’t succeed then it falls back.”
“Gold is hardly reacting at all to market participants’ concerns about new sanctions against Russia and the associated uncertainties,” Commerzbank said in a note.
Spot gold faces resistance at $1,356 per ounce, a break above which could lead to a gain to $1,365.23, said Reuters technical analyst Wang Tao.
Also pressuring gold was a slightly firmer dollar index, making gold more expensive for buyers using other
currencies.
Meanwhile, spot silver prices rose 0.3 percent to $17.20 per ounce, having touched their highest since Feb. 1 at $17.31, earlier in the session.
Platinum climbed 0.9 percent to $944.20 per ounce. It touched an over three-week high of $953.50 earlier in the day.
Palladium gained 1.1 percent to $1,046.47 per ounce, after marking its highest since Feb. 27 at $1,057.20.
