Log in
Forgot password ?
Become a member for free
Sign up
Sign up
New member
Sign up for FREE
New customer
Discover our services
Dynamic quotes 
News: Latest News
Latest NewsCompaniesMarketsEconomy & ForexCommoditiesInterest RatesBusiness LeadersFinance Pro.CalendarSectors 
All NewsEconomyCurrencies & ForexEconomic EventsCryptocurrenciesCybersecurityPress Releases

Gold steadies on dollar retreat; focus on Fed meeting

06/14/2021 | 10:47pm EDT

* May retail sales data due at 1230 GMT

* Spot gold may retest support at $1,842/oz - Technicals

June 15 (Reuters) - Gold prices edged higher on Tuesday, as a pullback in the dollar made the metal less expensive for other currency holders, while investors awaited the U.S. Federal Reserve meeting outcome for clues on the trajectory of its unprecedented monetary stimulus.

Spot gold was up 0.1% at $1,867.83 per ounce, as of 0646 GMT, after falling to its lowest since May 17 at $1,843.99 on Monday.

U.S. gold futures gained 0.2% to $1,869.

The dollar weakened 0.1% against its rivals.

"There seems to be surging demand for the Fed's reverse repo facility, which suggests that liquid conditions in the market are ample. This means that the market is probably prepared to withstand a gradual scaling back of Fed's asset purchasing," said Margaret Yang, a strategist at DailyFX.

"Technically, gold has broken down a key support level and it seems to be entering into a bearish trend," she added.

Investors await the Wednesday outcome of the Fed's two-day policy meeting. Nearly 60% of economists in a Reuters poll said a much-anticipated taper announcement will come in the next quarter.

Also on the radar, U.S. monthly retail sales data due later in the day.

Recent data showing a spike in U.S. consumer prices has benefited gold as it is seen as a hedge against inflation.

"Expectations are high that the Fed would not change the script of the minutes, but recent labour market improvements and higher inflation numbers do raise the risk that the Fed will be less dovish," Avtar Sandu, senior commodities manager at Phillip Futures, said in a note.

Spot gold may retest a support at $1,842 per ounce, a break below could cause a fall to $1,825, according to Reuters technical analyst Wang Tao.

Elsewhere, silver dropped 0.5% to $27.71 per ounce, palladium rose 0.2% to $2,756.68, while platinum slipped 0.3% to $1,161.

(Reporting by Brijesh Patel in Bengaluru, Editing by Sherry Jacob-Phillips)

ę Reuters 2021
Latest news "Economy & Forex"
03:05aFTSE 100 to Edge Lower After US Drop; Asia Gains
02:58aArcelorMittal has best quarter in 13 years on strong steel demand
02:54aOil edges higher on inventory drawdowns, Brent tops $75 a barrel
02:51aBritish power generator Drax ups dividend as profits rise
02:51aAstraZeneca vaccine sales jump to $894 million, submission for U.S. approval delayed
02:49aNestle raises guidance after coffee drinkers boost its first half
02:46aCaterer Compass reports Q3 margins at top end of forecast
02:45aIron ore slumps on subdued China demand outlook for second half
02:45aFrance's TotalEnergies to buy back shares as oil, gas prices boom
02:44aSanofi raises profit forecast after second quarter beat
Latest news "Economy & Forex"