19/09/2018 07:45 AST

Gold is sticking to a narrow trading range around $1,200 (Dh4,406) an ounce even after holdings in bullion-backed exchange-traded funds plunged to their lowest in a year.

Bullion for immediate delivery was 0.2 per cent lower at $1,198.74 an ounce as of 11.29am in London. In the last month, gold has traded within a range of about $31, with a high of $1,214.35 an ounce and low of $1,182.86 an ounce.

The metal is “continuing its slow dance around $1,200,” Carlo Alberto De Casa, chief analyst at London-based brokerage ActivTrades Ltd, said in a daily note.

The range has stuck even as holdings in bullion-backed ETFs dropped to about 2,104 metric tonnes, the lowest since September 20, according to data compiled by Bloomberg.

Leveraged funds also built up a short position on futures and options combined as of September 4 that was the biggest in data going back to 2006, according to the US Commodity Futures Trading Commission. The most recent data, for the week through September 11, showed only a small reduction in net bearish bets.

Range-Bound’

“Gold has remained range-bound around $1,200 for the past month during which time it has managed to absorb continued selling from futures and ETF investors,” said Ole Hansen, head of commodity strategy at Saxo Bank A/S. “It does indicate that some underlying demand has begun to emerge but in order for the price to progress to a point where short sellers begin to worry, it needs additional support from a combination of a weaker dollar and lower stocks.”

Gold has struggled to find traction for much of the year, with investors favouring the dollar as a safe-haven asset. The dollar’s strength since late April in particular has held back any potential advances in the gold price despite potential triggers ranging from political uncertainty in Europe and the expanding global trade tensions.

Still, traders and analysts of the precious metal have held a majority bullish outlook for the last four weeks, according to Bloomberg’s weekly survey. “We have not had a big dollar move for nearly four weeks now so I think we are due one soon,” Hansen said. For gold, “I think the risk is skewed to the upside given the market’s recent ability to absorb price negative news.”


Gulf News

Ticker Price Volume
QNBK 196.99 124,786
APPC 53.30 133,976
SAICO 11.92 520,367
SABIC 119.80 1,240,718
JARIR 154.40 89,382
STC 84.50 76,808
ALINMA 22.04 8,511,404
(In US Dollar) Change Change(%)
Gold 1,247.8 10.6 0.86
Silver 14.58 0.14 0.97
Platinum 792 4 0.51
Palladium 1,209 16 1.34
Gold jewelry and bullion market cites increase in sales

10/12/2018

The gold jewelry and bullion market in Kuwait has witnessed an increase in sales, which is better than in previous years, reports Al-Anba daily quoting sources.

Sources said recovery of th

Arab Times

Emirates Steel to unveil key products at Dubai event

09/12/2018

Emirates Steel, the only integrated steel plant in the UAE, will be sharing insights on steel market trends at an upcoming industry event in Dubai, UAE. A subsidiary of the General Holding Corpora

Trade Arabia

Gold hits over 5-week peak, palladium logs new record

05/12/2018

Gold climbed to a more than five-week high on Tuesday as the dollar sagged after the United States and China agreed on a 90-day pause to fresh trade tariffs, while palladium notched up a record high,

Gulf News

As Fed rethinks path for rates, gold’s poised to rally in 2019

03/12/2018

Gold may be poised to rally, as speculation mounts that the US Federal Reserve will hit the pause button on interest rate hikes in 2019. After lift-off in December 2015 followed by a rise a year lat

Gulf News

London gold market comes clean; it’s not as big as thought

22/11/2018

London’s gold market owned up to the biggest secret in bullion: it’s not as big as some thought and, for last week at least, smaller than New York’s.

An average of $36.9 billion (Dh135.53

Gulf News