Gold prices hover near 5.5-year lows
London (Aug 5) Gold prices were a tad lower on the London spot market on Wednesday, as the dollar firmed somewhat.
Spot gold was down 0.2 per cent at $US1,05.64 a troy ounce in morning European trade -- hovering near five-and-a-half-year lows.
The dollar was up against some currencies, including the euro, and flat against others, like the yen. A gaining greenback is typically bad news for the yellow metal as it makes it more expensive to buy for those holding other currencies. However, demand -- and therefore prices -- didn't fall victim to another bear raid.
"The latest firmness in the dollar does not seem to have been a catalyst for another push lower, at least not yet," said William Adams, head of research at Fastmarkets.
Looking ahead, $US1,080 an ounce remains the short-term support for gold, according to Howie Lee, an investment analyst at Phillip Futures.
But "better-than-expected ADP employment change figures...would probably usher in a stronger dollar and hence press gold prices down," said Mr Lee.
Later Wednesday, payroll processor Automatic Data Processing Inc. and forecasting firm Moody's Analytics will release the latest estimate of the increase in US private payrolls.
Precious metals were divided midweek. Spot silver was down 0.4 per cent at $US14.523 an ounce, while spot platinum was up 0.1 per cent at $US950.41 an ounce and spot palladium was up 0.3 per cent at $US595.76 an ounce.