Gold prices slip on rising dollar, equities; renewed Sino-US trade tensions restrict losses, silver falls 0.7%
Spot gold was down 0.3 percent at $1,729.05 per ounce. US gold futures fell 0.4 percent to $1,729.40.
Gold prices fell in holiday-thinned trade on Monday as the dollar strengthened and share markets rose, though lingering trade tensions between the United States and China limited losses for the safe-haven metal.
Spot gold was down 0.3 percent at $1,729.05 per ounce. US gold futures fell 0.4 percent to $1,729.40. Most markets were closed in the United States, Britain and some countries in Asia for public holidays.
“The main driver probably why gold is down is because the dollar is slightly stronger and also the risk sentiment, in spite of renewed tensions between the US and China seems to be still on the positive side,” UBS analyst Giovanni Staunovo said.
The dollar rose against its key rivals, making gold more expensive for holders of other currencies.
European shares gained as optimism over easing of lockdowns and signs of more stimulus for the battered euro zone economy helped sentiment.
On the geo-political front, China’s proposed national security legislation for Hong Kong could lead to US sanctions, White House National Security Adviser Robert O’Brien said on Sunday.
US-China tensions have risen in the past few weeks over the source of the novel coronavirus pandemic, which has infected more than 5.40 million people globally.
“Trade war tensions are on the rise, which should continue to hold a bid under gold prices over the short term supported by the bullish cocktail of economic, trade, and geopolitical factors,” Stephen Innes, chief market strategist at financial services firm AxiCorp, said in a note.
Indicative of sentiment, SPDR Gold Trust holdings rose 0.4 percent to 1,116.71 tonnes on Friday, while speculators increased their bullish positions in COMEX gold and silver contracts in the week to 19 May.
Elsewhere, palladium gained 0.9 percent to $1,964.09 per ounce, while platinum dropped 1.6 percent to $826.76, and silver slipped 0.7 percent to $17.06.
In Ahmedabad and Lucknow, 10 grams of 22-carat gold is being obtained at Rs 47,410 and Rs 47,510, respectively. The same quantity of 24-carat purity is priced at Rs 51,720 in Ahmedabad and Rs 51,830 in Lucknow
According to the MCX data, gold futures increased by 0.31 per cent to Rs 51,605.00 and silver futures also witnessed a surge of 1.27 per cent and settled at Rs 58,352.00
In Patna and Coimbatore, 10 grams of 22-carat gold is being traded at Rs 47,120 and Rs 47,940, respectively. In Patna, the same quantity of 24-carat purity is priced at Rs 51,400, while in Coimbatore it is valued at Rs 52,290