Gold slipped on Wednesday, February 7, as the dollar strengthened and global shares clawed their way off
two-month lows, though the precious metal was underpinned by the view that the dollar’s bear run remains in place despite rate hike expectations.
The dollar rose versus the euro on disappointment over reports that the leader of Germany’s Social Democrats (SPD), Martin Schulz, would not be taking over as finance minister for Europe’s biggest economy.
A stronger dollar makes dollar-priced gold costlier for non-U.S. investors.
Gold, seen as a safe haven asset, has failed to capitalise this week from the biggest selloff in six years in global
equities, but the precious metal, still driven largely by dollar movement, is not poised to unwind.
Spot gold dipped 0.2 percent to $1,322.74 per ounce, as of 1314 GMT. Prices fell over 1 percent to hit their lowest since Jan. 11 at $1,319.96 on Tuesday.
U.S. gold futures for April delivery fell 0.3 percent to $1,325.30 per ounce.
SPDR Gold Trust , the world’s largest gold-backed exchange-traded fund, said its holdings fell 1.4 percent to
829.27 tonnes on Tuesday from Monday.
Holdings saw their worst one-day fall since December 2016. Spot gold may test a support at $1,316 per ounce, as suggested by a retracement analysis and a head-and-shoulders, according to Reuters technical analyst Wang Tao,Reuters reports.
Spot silver dipped 0.2 percent to $16.58 per ounce. Platinum fell 0.9 percent to $981 per ounce after
touching its lowest since Dec. 11 earlier.
Palladium fell 1.3 percent to $997.20 per ounce, having touched its lowest since Dec. 7.
