BULLION LATEST 02/01: Gold prices up on weaker dollar

Gold prices were up in the Tuesday morning Asia trading session as the dollar weakened further.

The spot gold price was recently quoted at $1,306.35.50/1,306.65 per oz, up $3.7 from the previous trading day’s close. Trade has ranged from $1,304.25 to $1,307.50 per oz so far today.

The US dollar index on Tuesday morning was down 0.08 to 92.22.

“As global complacency over the trajectory of US rates continues to be astoundingly low, precious metals in general should continue to benefit. Anti-pollution measures in China squeezing the prices of industrial metals heavily will also continue to provide an indirect boost,” said Jeffrey Halley, senior market analyst at OANDA.
“Gold has opened positively in Asia, touching $1,308.00 initially before correcting to a still respectable $1,306.35. Gold has now traced out at double top at $1,308.00 and this should be reasonably strong resistance intra-day. A break will open the road to the mid-September highs of $1,314.50. Support is at $1,302.00 and $1,300.00 followed by $1,294.00, Friday’s low”, Halley added.

Silver and PGMS rise

  • In the other precious metals, the spot silver price was up $0.075 at $16.970 to $16.990 per oz. Platinum was up $3 to $929/934 per oz while palladium up $6 to $1064/1069 per oz.
  • On the Shanghai Futures Exchange, gold for June delivery was recently at 279.10 yuan ($42.86) per gram, and the June silver was at 3,893 yuan per kilogram

Currency moves and data releases

  • In other commodities, the Brent crude oil spot price was up $0.48 at to $67.97 per barrel and the Texas light sweet crude oil spot price was down $0.50 at $60.59 per barrel.
  • In equities, the Shanghai Composite index wasup 1.08% to 3342.98.
  • In data, major economies including Spain, Italy, French, Britain, United States and Canada are all expected to release manufacturing PMI numbers; Japan is closed for a bank holiday today.