Gold drifts higher
Gold prices edged higher on Wednesday despite a decline in crude oil, and dealers expected it to remain confined to ranges ahead of the Easter holidays.
Spot gold rose to $665.40/666.40 an ounce by 09:59 GMT, against $664.00/665.00 in New York late on Tuesday, when it slipped to track a drop in crude oil prices.
"Soft oil prices and a slightly firmer dollar have taken some of the heat out of the market, but overall, the metal is expected to move sideways to higher in the short term," James Moore, analyst at TheBullionDesk.com, said.
"Funds are keen to get back in and that's supportive for gold. Longer term, we are looking for higher numbers."
Oil slid towards $64 a barrel on hopes diplomacy would bring the release of 15 British sailors held by Iran, while the dollar backed away from a five-week peak versus the yen as investors were reluctant to enter more carry trades ahead of key US data and Easter holidays.
"While the usual fundamental factors influencing gold took a backseat yesterday, they could nevertheless lead to some volatility today," Dresdner Kleinwort said in a report, adding US data on oil inventory and non-manufacturing might impact the bullion market.
"However, as the extended Easter weekend approaches, it appears as less likely that investors will push the gold price above the 670$/oz resistance."
The Institute for Supply Management's non-manufacturing data and Factory orders for February are due for release on Wednesday. The US Department of Energy will also release its oil stocks data later in the day.
"Gold continues to wobble around the tight ranges, and only a break out from the ranges would clear the price direction in the future," Pradeep Unni, an analyst at Vision Commodities Services in Dubai, said.
"Gold needs a period of relative stability to encourage physical buyers to believe that a new and higher floor above $600/oz is here for the long-term," Fortis Bank said.
In other precious metals, silver rose to $13.45/13.48 an ounce from $13.38/13.41 in New York, while platinum rose to $1 243/1 248 an ounce from $1 238/1 242. Palladium gained to $353/355 from $350/354 an ounce.
Spot gold rose to $665.40/666.40 an ounce by 09:59 GMT, against $664.00/665.00 in New York late on Tuesday, when it slipped to track a drop in crude oil prices.
"Soft oil prices and a slightly firmer dollar have taken some of the heat out of the market, but overall, the metal is expected to move sideways to higher in the short term," James Moore, analyst at TheBullionDesk.com, said.
"Funds are keen to get back in and that's supportive for gold. Longer term, we are looking for higher numbers."
Oil slid towards $64 a barrel on hopes diplomacy would bring the release of 15 British sailors held by Iran, while the dollar backed away from a five-week peak versus the yen as investors were reluctant to enter more carry trades ahead of key US data and Easter holidays.
"While the usual fundamental factors influencing gold took a backseat yesterday, they could nevertheless lead to some volatility today," Dresdner Kleinwort said in a report, adding US data on oil inventory and non-manufacturing might impact the bullion market.
"However, as the extended Easter weekend approaches, it appears as less likely that investors will push the gold price above the 670$/oz resistance."
The Institute for Supply Management's non-manufacturing data and Factory orders for February are due for release on Wednesday. The US Department of Energy will also release its oil stocks data later in the day.
"Gold continues to wobble around the tight ranges, and only a break out from the ranges would clear the price direction in the future," Pradeep Unni, an analyst at Vision Commodities Services in Dubai, said.
"Gold needs a period of relative stability to encourage physical buyers to believe that a new and higher floor above $600/oz is here for the long-term," Fortis Bank said.
In other precious metals, silver rose to $13.45/13.48 an ounce from $13.38/13.41 in New York, while platinum rose to $1 243/1 248 an ounce from $1 238/1 242. Palladium gained to $353/355 from $350/354 an ounce.
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