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Gold Steadies after Remarks by the head of the ECB
 

Gold
Gold was barely changed on Monday after the dollar dropped following remarks by the head of the European Central Bank then later pared losses, although activity was muted ahead of a U.S. central bank meeting this week.

Spot gold increased 0.04 percent at $1,199.57 per ounce, giving up earlier gains. U.S. gold futures December delivery settled up $3.10, or 0.3 percent, at $1,204.40 per ounce. Liquidity was thin during Asian trading hours on Monday as markets in Japan and China were closed for a holiday.

Gold had been consolidating for the past month, remaining stable at around $1,200. While the dollar bounced off highs, and is expected to keep its downtrend. Investors await details from the Federal Reserve meeting concluding on Wednesday, when the U.S. central bank is expected to raise benchmark interest rates and shed light on the path for future rate hikes.

Meanwhile, speculators increased their net short position in COMEX gold contracts in the week to Sept. 18, U.S. data showed on Friday. Bullion is expected to remain range-bound in the near term.

Silver

Silver rose 0.3 percent at $14.29 an ounce. Its investment value surfaced as prices were at multi-year trough. A rally in gold prices will push up silver prices at a faster pace.

 

Dealing Room, ICBC Beijing Branch
                       Cheng Yu


(2018-09-25)
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