Gold hits 1-week high as dollar softens; palladium near record high
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rose to a one-week high on Friday as the dollar softened following recent gains on uncertainty over Britain’s exit from the European Union, while palladium held near a record high, putting it close to the price of bullion.
The surge in palladium, used as an emissions-reducing auto catalyst for vehicles, reflected speculative buying driven by expectations of increased demand in a tight market, analysts said.
Spot gold was up 0.2 percent at $1,215.33 per ounce by 1126 GMT, having touched its highest since Nov. 9 at $1,218.33.
U.S. gold futures gained 0.1 percent to $1,216.3.
“Investors are a bit more interested in gold … the momentum is up, we may go to $1,250 in the short term,” ABN AMRO analyst Georgette Boele said.
The dollar inched down to 96.76 against a basket of major currencies after British Prime Minister Theresa May clung to her Brexit plan despite the resignations of senior ministers.
“Investors are a bit more interested in gold … the momentum is up, we may go to $1,250 in the short term,” ABN AMRO analyst Georgette Boele said.
The dollar inched down to 96.76 against a basket of major currencies after British Prime Minister Theresa May clung to her Brexit plan despite the resignations of senior ministers.
A weaker dollar makes bullion cheaper for holders of other currencies.
“Gold should continue to find demand on dips, provided the U.S. dollar remains in check,” Stephen Innes, APAC trading head at OANDA in Singapore, said in a note.
The greenback has emerged as a dominant safe-haven asset this year on the back of a U.S.-China trade dispute, denting the appeal of gold, which has fallen 11 percent from an April peak. Palladium edged 0.6 percent higher to $1,163.50 per out.