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Gold lower after two sessions of gains
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U.S. dollar up 0.1%
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Sharp rise in gold-backed ETF inflows in recent weeks- ANZ
March 24 (Reuters) – Gold prices eased in range-bound
trading on Friday due to a firmer dollar, while investors
digested the U.S. central bank’s hints at a potential pause in
its rate-hike trajectory.
Spot gold was down 0.1% at $1,991.59 per ounce, as of
0344 GMT, after two sessions of sharp gains. U.S. gold futures
also dipped 0.1% to $1,993.30.
Non-yielding bullion, which becomes more attractive in a
low-interest-rate environment, gained 2% after the Federal
Reserve signalled it might pause further rate increases after
the recent collapse of two U.S. banks, and pointed to just one
more rate hike this year.
“However, the Fed also mentioned it would not look to cut
interest rates this year,” said Brian Lan, managing director at
Singapore-based dealer GoldSilver Central.
Lan noted some profit-taking at play, and added, “gold
prices would look to consolidate, unless there’s any big news.”
The dollar index edged up 0.1%, making bullion more
expensive for overseas buyers.
The Bank of England on Thursday raised interest rates for
the 11th time in a row. The Swiss National Bank raised rates by
50 basis points and said UBS’s takeover of Credit Suisse had
averted a financial disaster.
“The key focus is still on the banking crisis in the U.S.,
they’re looking at whether there’s further contagion to that
effect,” GoldSilver’s Lan said.
Gold shot over the $2,000-level to a one-year peak earlier
this week on safe-haven demand, but has since pulled back from
those levels, although financial system uncertainties remain.
U.S. Treasury Secretary Janet Yellen on Thursday sought to
reassure jittery investors that American bank deposits were safe
and promised policymakers had more firepower to battle any
crisis.
“An increase in net long positions by speculators has been
driven by both new longs and short covering. The inflows into
gold-backed ETFs have risen sharply in recent weeks,” ANZ said
in a note.
Spot silver fell 0.2% to $23.07 per ounce, platinum
eased 0.1% to $983.05 and palladium was down 0.3%
at $1,425.75.
(Reporting by Kavya Guduru in Bengaluru; Editing by Subhranshu
Sahu and Sherry Jacob-Phillips)
