Gold steadies below $1,900 as investors await cues from U.S. data
By Arundhati Sarkar
(Reuters) - Gold steadied off the key $1,900 level on Thursday, with gains held in check by an uptick in the dollar as investors awaited big-ticket U.S. economic data that could offer cues on inflation and monetary policy.
Spot gold had inched 0.1% lower to $1,895.10 per ounce by 0917 GMT, after hitting its highest since Jan. 8 at $1,912.50 on Wednesday.
U.S. gold futures fell 0.3% to $1,898.50.
Given the strong moves since the beginning of April, gold will be now vulnerable "to some element of profit-taking and we've got Friday data about the U.S. consumption spend that the market will be very much focused on", said independent analyst Ross Norman.
A period of consolidation above $1,900 could be helpful for gold, Norman added.
The dollar index ticked up, making gold less attractive for those holding other currencies. [USD/]
Market participants await a slew of data, including U.S. GDP and jobless claims numbers to be released later in the day and the monthly U.S. personal consumption report on Friday.
Fed officials have downplayed rising price pressures and affirmed support to keep monetary policy accommodative for some time.
But Fed vice chair for supervision Randal Quarles on Wednesday said he was prepared to open talks on reducing emergency support measures.
"Lower bond yields, weaker dollar and inflationary pressures are providing the perfect backdrop for gold," ANZ Research said in a note.
"That said, gold remains vulnerable to any news around tapering of asset purchases, as the global economy is in the midst of a strong recovery."
Palladium rose nearly 1% to $2,771.63 per ounce, while silver eased 0.3% to $27.62 and platinum fell 0.3% to $1,187.66.
Given the non-performance of silver when gold burst through $1,900, "silver seems to be reluctant to travel on this journey, in the sense that it authenticates or validates gold's move higher", Norman added.
(Reporting by Arundhati Sarkar in Bengaluru; Editing by Nick Macfie)
