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Gold Steady Near Seven-week Highs On Struggling Dollar

Spot gold was nearly flat at $1,269.30 per ounce at 0358 GMT. It rose 2.2 per cent last month, its biggest monthly gain since February

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Gold prices held steady near seven-week highs early Tuesday, after  registering their biggest monthly gain in five in July, supported by a  slump in the US dollar and political uncertainty.

Spot gold was  nearly flat at $1,269.30 per ounce at 0358 GMT. It rose 2.2 per cent last  month, its biggest monthly gain since February.    

US gold futures for August delivery rose 0.2 per cent to $1,269.00 per ounce.

"A  weaker US dollar continues to help precious metals to shine," said  Jeffrey Halley, a senior market analyst at OANDA. "To this, we can add  US/Russia relations, North Korea, Venezuela and the revolving door at  the White House to the mix, all of which will also be supportive of gold  as a safe haven."

The dollar inched up but still hovered near a  2-1/2 year low versus the euro on Tuesday. Its outlook remained clouded  by US political turmoil and doubts about whether there will be another  Federal Reserve rate hike this year. 

Tensions simmered in the  US as Russia retaliated to new sanctions and as North Korea continued  to pose a threat to the country after it said on Saturday it had  conducted another successful test of an intercontinental ballistic  missile.

Gold is often used as an alternative investment during times of political and financial uncertainty.    

Investors  are also looking ahead to the U.S. non-farm payrolls data later this  week and how that will affect the dollar, according to Ronald Leung,  chief dealer at Lee Cheong Gold Dealers in Hong Kong.

Spot gold is  poised to break a resistance at $1,271 per ounce and rise towards the  next resistance at $1,277, driven by a strong wave C, according to  Reuters technical analyst, Wang Tao.

In other precious metals,  silver 0.3 per cent to $16.84 per ounce. It hit an over one-month high in  the previous session and rose 1.3 per cent in July.

Palladium rose  0.4 percent to $886.73 per ounce after it hit a near seven-week high in  the previous session $897.05. It rose almost 5 per cent in July. 

Platinum  climbed 0.4 percent to $938.90 per ounce, after rising to $943.70 in  the previous session, the highest since June 14. It rose almost 5  per cent in July in what was its first monthly gain since February.

(Reuters)


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