@Gold edges lower but downside limited amid overall caution(21/04/2560)

21 Apr 2017
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Investing.com - Gold prices edged lower on Friday, but the precious metal’s downside was expected to remain limited amid overall caution in the markets after a terrorist attack in Paris killed one person late Thursday and ahead of Sunday’s first round in the French presidential election. On the Comex division of the New York Mercantile Exchange, gold futures for June delivery were down 0.22% at $1,281.00. The June contract ended Thursday’s session just 0.03% higher at $1,283.80 an ounce. Futures were likely to find support at $1,273.80, the low of April 12 and resistance at $1,292.70, the high of April 19. Safe-haven demand re-emerged after a French policeman was shot dead and two others were wounded in central Paris on Thursday night in an attack claimed by the Islamic State militant group. Market participants were also jittery ahead of the first round of the French presidential election due on Sunday, as recent polls have forecast the most likely outcome to be centrist Emmanuel Macron against far-right candidate Marine Le Pen. Gold’s gains were limited however, as the greenback mildly recovered from some recent losses after U.S. Treasury Secretary Steven Mnuchin said on Thursday that the administration will unveil a tax reform plan very soon. The comments eased doubts over whether President Donald Trump will be able to pass tax reforms in the near term. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 99.75, off Thursday’s fresh three-week low of 99.29. A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies. The greenback had come under pressure after North Korean state media warned the U.S. earlier in the week of a "super-mighty preemptive strike" and said don't "mess with us." Sentiment on the U.S. dollar was also fragile following the release on Thursday of disappointing data on U.S. initial jobless claims and manufacturing activity in the Philadelphia area. Elsewhere in metals trading, silver futures for May delivery slumped 0.43% to $17.940 a troy ounce, while copper futures for May delivery climbed 0.63% to $2.558 a pound. Source: investing.com (20/04/2017)

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