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04 March 2024

Gold eases as investors eye currencies

By Agencies

Gold slipped in slow trade yesterday as uncertainties over a bailout package for debt-stricken Greece looked expected to undermine the euro and burnish the US dollar's safe-haven appeal.

Spot gold was at $1,115.80 an ounce yesterday, down $2.60 from New York's notional close on Monday, when it rose to its highest in almost a week at $1,123.30 on bargain hunting driven by early gains in the euro.

Gold, which gained two per cent last month, was struggling to revisit a one-month high about $1,130 hit in late February and may need to clear a January high around $1,150 to sustain gains, dealers said.

"This year I don't think we'll see much action in gold because I think the dollar is going to surprise on the upside more dramatically than it will on the downside, so that's going to generate a bit of headwind for gold prices," said Edward Meir, MF Global analyst.

Holdings in the SPDR Gold Trust, the biggest exchange-traded fund backed by the metal, were unchanged for a fourth day yesterday. Assets stood at 1,106.99 tonnes, according to the company's website.

Bullion trading was also muted in Asia as dealers stayed on the sidelines, waiting for clues from the currency markets.


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