Gold higher on weaker dollar, seen steadier
11:37 a.m. Jun 30, 1998 Eastern
LONDON, June 30 (Reuters) - Gold prices rose in European trading on
dollar weakness, and are expected to edge higher, dealers said on
Tuesday.
Gold was last quoted at $296.80/$297.30 an ounce, up from Monday's New
York close at $293.40/$293.90. Bullion also fixed higher in London in
the afternoon at $296.30, against the morning fix of $295.75.
Dealers said the weaker dollar had contributed towards the higher move,
while news that a U.S. warplane had launched a missile against an Iraqi
radar post had also lend support to gold.
''There is potential for it to go higher with the dollar weakening,''
one dealer said.
''There has been some good short covering today but we ran into a bit of
selling when gold reached $298.00,'' the dealer said.
Other dealers said a relatively stable South African rand also
contributed to gold's gains, adding that bullion might aim higher.
''It should hold its levels and maybe try to go higher later on, the
dollar/yen has still not recovered from the lows,'' another dealer said.
He said gold was seeing resistance at the 200-day moving average of
$298.00/$298.60.
''If it breaks through that, you can see it trying for
$300.50/$301.00,'' the dealer said.
Gold ignored news from Russia that one of Russia's largest banks,
Rossiisky Kredit Bank, planned to export around 8.5 tonnes of gold in
1998.
Silver also edged higher and was last quoted at $5.35/$5.38, from the
New York close at $5.32/$5.35.
Platinum gained in European trade and was last quoted $8 higher at
$358.00/$360.00.
''It was probably a bit of short covering after the price got to around
$350.00, and it started to move higher on gold going up,'' another
dealer said.
Palladium was last quoted lower at $287.75/$297.75, from the close at
$290.00/$300.00.
((Marius Bosch, London newsroom +44 171 542 8065. Fax +44 171 542 8077.
london.commodities.desk+reuters.com))
Copyright 1998 Reuters Limited |
