Gold futures recovered from a multi-week low Wednesday morning in the US on a softening dollar and continued ETF inflows but the complex appears range-bound overall between $1,270 and $1,300.
Gold for June delivery on the Comex division of the New York Mercantile Exchange rose $15.30 or 1.2 percent to $1,281.10 per ounce. Trade has ranged from $1,266.30 to $1,280.80.
The precious metal started the week on soft footing amid a general recovery in equities and the dollar. But the greenback slipped 0.4 percent to 1.1414 against the euro after investors digested another round of data.
“Prices are showing good gains here in early US trading as the US dollar index has backed down from its recent rally,” Jim Wyckoff of Kitco News said. “So far Wednesday is another uneventful day in the marketplace, with no major, fresh events to drive prices.”
On Comex, non-commercials massively boosted their bullish bets in April 26-May 3, lifting the net total by 50,791 contracts or 23 percent on the previous week to an all-time high of271,648 contracts.
Additionally, ETF demand has grown since the start of May after a quiet April, in contrast to the other precious metals. ETF investors have bought 47 tonnes of gold so far this month after just 14 tonnes in April.
“This is a good recovery and will give succour to some of the longs who were starting to worry that gold might be on the verge of a collapse,” David Govett of Marex Spectron said. “This now seems far from the case and this rally from the lows will encourage others to look to buy on dips.”
Meanwhil, in a slow data day, US crude oil inventories are slated for release later today.
Turning to international markets, Germany’s DAX and France’s CAC-40 were each down 0.7 percent and 0.8 percent respectively.
As for other precious metals, Comex silver for July delivery jumped 46.3 cents or 2.7 percent to $17.555 per ounce. Trade has ranged from $17.125 to $17.620.
Platinum for July settlement gained $7.40 or 0.7 percent to $1,054.20 per ounce while the most actively traded palladium contract stood at $594.45, up $10.35 or 1.8 percent.
(Editing by Mark Shaw)