Gold Prices Drift Lower in Thanksgiving Day Trade

Yolanda Curtis
November 23, 2017

Dubai gold prices are Dh156.25 for 24-karat and 22-karat can be bought for Dh146.75. USA gold futures for December delivery gained 0.4 percent to $1,280.10. The Standard & Poor's 500 index dipped 1.95 points, or 0.1 percent, to 2,597.08.

Market participants will now monitor the release of the minutes of the European Central Bank's latest policy meeting, due later today.

Fed officials agreed that the timing and size of future adjustments to the target range for the federal funds rate would depend on their assessments of realized and expected economic conditions relative to the Federal Open Market Committee's (FOMC) objectives of maximum employment and 2 percent inflation, said the minutes.

"There appears to be a bit of profit taking". Gold prices consolidated and continue to trade in the channel as you can see in the chart.

The dollar eased to as low as 111.07 yen in holiday-thinned Asian trade, its weakest level since September 18, and last fetched 111.22 yen, little changed from late U.S. trade on Wednesday.

"Although the minutes seemed to tick a December hike as a done deal, traders took fright at their more "data-driven" neutral stance into 2018", said Jeffrey Halley, a senior market analyst with OANDA. "We would expect trading over the coming two days to be muted with the USA away".

The Bloomberg dollar spot index fell to the lowest level since October and Treasuries added to gains, pushing the 10-year yield to 2.32 per cent. Volumes were low in United States equity trading ahead of the Thanksgiving holiday, with the S&P 500 Index closing down a tad below the 2,600 level that it breached for the first time Tuesday. Spot gold may break support at $1,274 per ounce, and fall towards the October 6 low of $1,260.16, according to Reuters technical analyst Wang Tao. The euro rose 0.7 per cent to US$1.1823.

Against a basket of six major currencies, the dollar stood at 93.268, languishing near a one-month low of 93.212 that had been set on Wednesday.

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