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U.S. stocks rise; dollar up 0.3%
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Gold to hover around $2,000 until next Fed meet - analyst
(Updates prices)
By Deep Kaushik Vakil
March 29 (Reuters) - Gold prices slipped on Wednesday as
upbeat equities and a stronger dollar weighed, but declines in
safe-haven bullion have been fairly contained so far, signalling
lingering worries about the banking sector.
Spot gold was trading 0.3% lower at $1,967.29 per
ounce by 2:11 p.m. EDT (1811 GMT). U.S. gold futures settled 0.3% lower at $1,966.90.
"It's risk-on in the equity markets where stocks are going
up," said Bob Haberkorn, senior market strategist at RJO
Futures. "There's been no real new news of any banking issues
that we don't already know about."
Wall Street's main indexes gained as worries about stress in
the banking sector eased, while Treasury yields reversed course
and fell, even as uncertainty still lingered among bond
investors over the economic outlook. The dollar gained about 0.3% against most major peers,
pausing its recent declines. A stronger dollar makes bullion
more expensive for overseas buyers. "The marketplace is slowly moving beyond the U.S. and
European banking troubles as risk appetite creeps back into the
markets. However, veteran market watchers believe it's too soon
for the 'all clear' siren regarding the matter," said Jim
Wyckoff, senior analyst at Kitco Metals, in a note.
Investors will look to a key inflation gauge, the core
Personal Consumption Expenditures (PCE) price index, expected at
the end of the week for more clues on the Fed's monetary
tightening plans.
"We're going to hover around the $2,000 (per ounce) level
until we get to the next Fed meeting... The Fed is the driver in
the market for precious metals," Haberkorn said.
Investors priced about a 39% chance of a 25-basis-point hike
in May, according to the CME FedWatch tool. Higher rates tend to
dull zero-yield gold's appeal.
In other metals, spot silver gained 0.5% at
$23.37 per ounce, platinum was up 0.5% at $968.41, while
palladium added 1.2% at $1,436.71.
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xau Gold pulls back as banking jitters ease ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Deep Vakil in Bengaluru; Editing by Andrea Ricci
and Krishna Chandra Eluri)
