On Thursday, gold keeps near one-week low hit in the earlier session, worried by buoyant third-quarter U.S. growth data and a strong outlook of the economy by the Federal Reserve chair Janet Yellen.
The absence of concrete drivers has set gold between $1,265 and $1,300 an ounce for the entire November, its thinnest monthly range in 12 years.
Spot gold was slightly changed at $1,283.95 an ounce. It was down 0.8 percent on Wednesday to hit its lowest since November 22 at $1,283.90.
Bullion is still directing to its first monthly gain since August after it has risen 1 percent for the month. U.S. gold futures jumped 0.1 percent at $1,283.10.
“We see gold prices remaining subdued over the next two months but after that, it will start to rise,” said Richard Xu, a fund manager at HuaAn Gold, one of China’s biggest gold exchange-traded fund.
“It would be flat for a few days because the economy is great and the financial markets are in sync with inflation.”
Meanwhile, the U.S.economy has been reinforced this year and will permit extended interest rate hikes despite a fortified global recovery, Yellen shared with Congressional leaders on Wednesday in her last slated testimony on Capitol Hill.
Greater U.S. interest rates would retain the pressure on gold prices as investors look for returns on assets aside from the non-interest bearing bullion.
According to the data, the U.S. economy developed quicker than originally thought in the third quarter, achieving its fastest pace in the three years. Spot gold may halt a support at $1,281 per ounce and slip more towards the next support at $1,277, a report said.
“While we remain cautious about it (gold prices) over three months, we regard setbacks as opportunities to add exposure,” an analyst from UBS said.
“In the past, early stages of monetary policy normalization hurt gold; but this time such ad adjustments resemble baby steps and likely will only be undertaken in sync with rising inflation,” they said.
The dollar index, which measures the greenback against a trade-weighted basket of major currencies, help steady as investors watched out on the progress of the U.S. tax reform legislation that could expect a more conclusive vote later this week.
Silver slipped to an eight-week low at $16.47 an ounce prior recuperating to $16.58. Palladium added 0.7 percent to $1,020.75 an ounce, while platinum climbed 0.6 percent at $942.49.
In November, palladium was up 4.1 percent, platinum gained 3.1 percent, while silver dropped by 0.7 percent.
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