01/09/2017 09:05 AST

Gold prices fell on Thursday as the dollar gained ground after data showed strong growth in the United States, but losses were capped by rising security concerns created by tensions on the Korean peninsula.

The US currency rose after data showed the US economy grew at an annual three per cent in the second quarter, making dollar-denominated gold more expensive for holders of other currencies.

Spot gold was down 0.1 per cent at $1,306.80 an ounce at 1151 GMT, but on track for a near 3 per cent rise this month.

US gold futures eased 0.1 per cent to $1,311.70. Gold prices are up around 13 per cent so far this year.

Some of that gain came after North Korea fired a missile over Japan. That was followed two days later by South Korea’s air force conducting an exercise with two US nuclear-capable bombers above the Korean peninsula on Thursday.

“The situation in Korea encouraged interest in gold and the weaker dollar has lifted gold,” Oxford Economics commodities analyst Dan Smith said.

“We don’t know what’s going to happen with geopolitics, but we seem to be in a fairly stable environment in terms of the macro picture, which should mean limited upside for gold.” Oxford Economics expects gold price to average $1,265 in the fourth quarter and $1,270 next year.

But some analysts say subdued inflation in the United States could mean the US Federal Reserve delays monetary policy tightening, which may lead to further losses for the dollar already near its lowest since early 2015.

The Fed’s preferred inflation measure, the personal consumption expenditures (PCE) price index excluding food and energy, rose 0.9 per cent in the second quarter, its slowest in more than two years.

Holdings of gold in physically-backed exchange traded funds jumped to 54.176 million ounces on Monday, up more than two per cent since August 9, but the last couple of days has seen investors sell, albeit small amounts.

On the technical front, attempts to break towards Monday’s 9-1/2 month high above $1,325 face resistance at $1,312, the upper Bollinger band. Support at $1,300 is reinforced by a/sFibonacci retracement level at $1,297.

“The North Korean missile test ... helped gold burst decisively through $1,300 an ounce triple-top resistance, INTL FCStone analyst Edward Meir said. “It will be interesting to see if further chart-based buying materialises now that this triple-top has been breached, especially on any dips.”


Ticker Price Volume
QNBK 135.00 120,132
SABIC 112.40 5,501,053
STC 81.90 613,277
ALMARAI 54.10 748,793
WALAA 33.40 757,302
TAWUNIYA 72.00 683,657
BURUJ 34.25 27,534
(In US Dollar) Change Change(%)
Gold 1,331.8 21 1.6
Silver 16.55 0.38 2.35
Platinum 956 14 1.49
Palladium 986 9 0.92
Aluminium hits 3-month low as stocks ramp up, tariffs loom


Aluminium slid to a three-month low on Thursday, hurt by a rise in stocks, the prospect of looming US import tariffs, and expectations that supply from China will rise as its winter pollution control

Gulf News

Gold edges lower, seen vulnerable ahead of U.S. inflation data


Gold slipped on Tuesday, pressured by a firmer dollar and concern that US inflation data later in the day will be robust, strengthening the case for more US interest rate hikes.

Analysts po

Gulf News

Copper miners take hunt to Mongolian dunes


When temperatures rise and winds drop in the coming weeks, a band of explorers will hunt for copper riches in Mongolia’s Gobi Desert. For years Rio Tinto has been the sole international copper mine o

Oman Daily Observer

Gold off lows as dollar slips on slowing US wage gains


Gold prices bounced off their lows on Friday after the US dollar slipped against most of its peers as slowing wage gains foreshadowed a gradual inflation increase this year.

US jobs growth

Gulf News

Gold gains ground amid concerns over trade war


Gold touched a near two-week high on Monday as investors opted for safe-haven assets on political uncertainty in Italy and fears of a potential escalation of a simmering global trade war.

The Gulf Today