Gold price hovers near $1,380; lacking fresh news for price actions

Gold price hovers near $1,380; lacking fresh news for price actions

- Spot gold prices trade in sideways fashion around the $1,380 level as there were little fresh news but found some support from a weaker dollar. It was a quiet session yesterday, a sea of calm compared to the previous week’s volatility when tensions on the Syrian conflict drove gold and oil to trade in large swings.

- Gold prices closed up yesterday just 10 cents higher on the day at $1,387.55 and traded within a $10 range. Spot gold prices were last quoted at $1,380.40 an ounce.  

- Other than the ongoing US debate about whether they should intervene in Syria, gold seems relatively unaffected by the slew of supportive economic data out of China earlier this week. Exports rose 7.2 percent compared to a year ago and the consumer price index came out showing inflation was contained, a 0.1 percentage point lower at 2.6 compared to July.

- There seems little to move the bullion market definitively at the start of the week and participants could remain on the sidelines until next week’s meeting of the Federal Open Market Committee. 

- Furthermore, South Africa gold miners’ strike had also ended after workers accepted an increase of eight percent in pay. “Members of the NUM (National Union of Mineworkers) have accepted the same offer made by other producers in the industry, and have returned to work,” Harmony Gold, the world’s fifth largest gold producer, said in a statement.

- Other precious metals are trading mostly lower; silver prices at $23.39/44 per ounce is down 1.4 percent from last close of $23.73. Platinum lost $10 from yesterday’s close of $1,486 to last quote at $1,476 and palladium prices at $683/688 are down $6.

Lynette Tan

About Lynette Tan

Lynette joined FastMarkets after her experience in research and analysis of the commodities market, specialising in precious metals. She is now based in our Singapore office and ensures that metal news in Asia comes under our radar to receive timely coverage.