Gold prices slip from one-month high

06/04/2017 05:53 AST

Gold slipped from one-month highs on Wednesday after failing to break technical resistance at its 200-day moving average for the third time, but the appetite for safe-haven assets ahead of a meeting of US and Chinese leaders limited its losses.

Spot gold was down 0.2 percent at $1,252.70 an ounce at 1050 GMT, while US gold futures were 0.3 percent lower at $1,254.90 an ounce.

Gold touched $1,261.15, its highest since Feb. 27, on Tuesday but failed to close above its 200-day moving average, currently at $1,258, for the third time in less than six weeks. “The failed consolidation above the 200 DMA has no doubt hit investor confidence, however, we do still continue to see solid interest in the metal at current levels,” said Sam Laughlin at MKS PAMP.

Investors are poised to push gold higher, said Georgette Boele at ABN AMRO. “Upward momentum is getting stronger. It looks like the market is not willing to give up yet.” Gold has risen 8.8 percent so far this year and has held just under its 200-day moving average since late March. Investors are hesitating to make sure there are no negative surprises for gold in US employment data due on Friday, Boele said.

The dollar was flat on Wednesday, while US bond yields were slightly higher. Gold was also underpinned by demand for safe assets after North Korea fired a ballistic missile into the sea ahead of a summit between US President Donald Trump and Chinese President Xi Jinping on Thursday and Friday.

Arab News