Gold prices edged lower on Tuesday, failing to break a key resistance but hovered near a two-week high hit in the previous session on prospects of a less-hawkish Federal Reserve policy.
The Fed is likely to wait at least until June policy meeting to decide whether to lift U.S. interest rates again.
Spot gold was down 0.4 percent at $1,228.61 per ounce. U.S. gold futures fell 0.4 percent to $1,228.60.
"What we are seeing is a bit of washout in short-term positioning as gold is unable to surpass the strong resistance at $1,237," said Jeffrey Halley, senior market analyst at OANDA.
"But, there is no other way than looking bullish at gold for the moment. There are extended positions in dollar. We are going to see this dollar correction running for a while, which will support gold."
The dollar index, which measures the greenback against a basket of currencies, was down 0.2 percent at 100.240.
The lack of a concrete policy from U.S. President Donald Trump's administration is worrying investors and more people will opt for gold when the stock markets go lower, analysts and traders said.
Source Yahoo Finance
Read more:
25 Canada Square, Level 33, office 50, Canary Wharf London, E14 5LQ +44 20 3608 6256
World Financial Markets - 0700 17 600 Varchev Exchange - 0700 115 44
Varchev Finance Ltd is registered in the FCA (FINANCIAL CONDUCT AUTHORITY) with a passport in the United Kingdom: FCA, United Kingdom - registration number: 494 045, which allows provision of financial services in the United Kingdom.
Varchev Finance Ltd strictly comply with the statutes of the European directive MiFID (Markets in Financial Instruments). targeting increased efficiency, transparency and uniformity of financial instruments.
Varchev Finance Ltd is authorized and regulated by the Financial Supervision Commission - Sofia, Bulgaria: License number RG-03-02-05 / 15.03.2006
The information on this site is not intended for distribution or use by any person in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.
Disclaimer:
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 63,41% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you understand how CFDs work, and whether you can afford to take the high risk of losing your money.