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Gold snaps two days of gains as dollar steadies; palladium falls
[SINGAPORE] Gold dropped after two days of gains and palladium retreated following the biggest one-day jump in eight months as the dollar held steady.
Immediate-delivery bullion fell as much as 0.4 per cent to US$1,341.74 an ounce and was at US$1,343.28 at 10:16 am in Singapore, according to Bloomberg generic pricing, as a gauge of the US currency steadied after a two-day, 0.8 per cent loss. Palladium was 0.4 per cent lower at US$720.99 an ounce after rising 4.4 per cent on Wednesday.
Gold has fluctuated this week as investors seek to gauge whether the Federal Reserve will tighten US monetary policy in the months ahead, with shifting perceptions buffeting the dollar.
The precious metal remains 26 per cent higher this year on rising demand spurred by weak or negative interest rates across major economies and financial-market volatility.
Gold "is kind of in a trendless state, trapped in a small range," said Gnanasekar Thiagarajan, director of Mumbai-based Commtrendz Risk Management Services Ltd.
"There's no further clues, prices are more or less stuck," he said by phone.