Gold price dips on profit taking, firm dollar ahead of U.S. data

London (April 6)  Gold edged lower on Thursday, pressured by a slightly firmer dollar and as some investors sold to redeem profits after bullion's recent challenge to the upside.

Spot gold inched down 0.1 percent to $1,253.21 per ounce by 0955 GMT, retreating from an overnight peak of $1,258.96.

U.S. gold futures were up 0.5 percent at $1,255.30, after climbing as much as 1 percent to $1,260.80 earlier in the day.

"The slight uptick in the dollar and some profit taking
after the move late yesterday is probably bringing in that bit
of weakness," said Jonathan Butler, commodities analyst at
Mitsubishi in London.
    The markets were waiting for U.S. non-farm payrolls data on
Friday, which will likely be in line with expectations, he
added. "So we may stay around this $1,250 to $1,260 level for
some time, just as we have done since the end of March."   
    Investors were cautious ahead of the meeting between U.S.
President Donald Trump and Chinese President Xi Jinping due
later on Thursday, the first between the world's two most
powerful leaders.
    Topping the agenda at Trump's Mar-a-Lago resort in Florida
will be whether he makes good on his threat to use U.S.-China
trade ties to pressure Beijing to do more to rein in its
nuclear-armed neighbour North Korea.            
    Spot gold hit $1,261.15 on Tuesday, its highest since Feb.
27, but has failed to breach a key 200-day moving average of
$1,258.
    "It just hasn't shown any ability to break the 200-day
moving average and clearly shows that the price action is not
being driven in isolation but has been driven by the U.S.
dollar," said Jeffrey Halley, senior market analyst at OANDA.
    "It is kind of looking like gold is running out of steam in
the short term."
    The dollar index       , which measures the greenback
against a basket of currencies, was slightly firmer.      
    Supporting gold was some safe haven interest on the back of
a dip in stocks on Thursday, with risk appetite soured by signs
the Federal Reserve might start paring asset holdings later this
year just as the chance of early U.S. fiscal stimulus seems to
be evaporating.           
    Spot silver        dropped 0.3 percent to $18.21 an ounce.
    Platinum        fell 0.8 percent to $951.50, while palladium
       gave up 0.3 percent to $802.50. It hit a more than
two-year high of $815.70 in the prior session.

Source: Reuters