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Citi stays modestly bullish on platinum
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Commerzbank sees gold falling to around $1,900 in coming months
(Adds graphics and updates prices)
By Ashitha Shivaprasad
March 30 (Reuters) - Gold prices edged up on Thursday,
helped by a softer dollar as investors lie in wait for economic
data to gauge the U.S. Federal Reserve's rate-rise path.
Spot gold was up 0.3% at $1,969.13 per ounce, as of
1157 GMT. U.S. gold futures rose 0.1% at $1,986.30.
The dollar index eased 0.2%, making gold more
attractive for overseas buyers. "This is a massive week for economic data from the U.S. and
this has led to gold essentially trading in a holding pattern,"
StoneX analyst Rhona O'Connell said.
U.S. gross domestic product data and weekly initial jobless
claims data is due at 1230 GMT. Core U.S. personal consumption
expenditures (PCE) data is due out on Friday.
Investors will scan the data for implications for the U.S.
central bank's monetary policy. According to the CME FedWatch
tool, markets see a 58.7% chance of the Fed maintaining rates at
current levels in May.
"The outlook for gold prices remains constructive for a
return to the recent highs, as the Fed is unlikely to raise
rates much higher than current levels," said Michael Hewson,
chief market analyst at CMC Markets.
Last week, bullion prices surpassed the key $2,000 level on
safe-haven demand spurred by the recent banking turmoil.
Limiting gains, European stocks rose to three-week highs on fading concerns about stress in the banking sector. "We expect the gold price to fall to around $1,900 per troy ounce (previously $1,800 per troy ounce) in the coming months," Commerzbank wrote in a note.
Spot silver rose 1.8% to $23.76 per ounce.
Citi wrote in a note it was staying "modestly bullish on platinum and see prices rising to $1,050/oz over the next 6-12 months, though sluggish global growth should reduce its upside relative to gold and silver."
Platinum rose 1.4% to $980.79 and palladium gained 0.8% to $1,451.53.
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xau Gold ticks up as traders eye U.S. economic data ^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^^>
(Reporting by Ashitha Shivaprasad in Bengaluru; Editing by
Robert Birsel and Krishna Chandra Eluri)
