Singapore: Gold shrugged off a weaker euro to edge up on Monday, with thin trade due to the Lunar New Year break exaggerating movements, while platinum and palladium hovered below their strongest levels in 17 months.
“I don’t think there are many other influences in the market, certainly in the Asian market anyway, beyond currencies right now. So I think it’s very much going to be the case of watch the dollar index,” said Nick Trevethan, senior metals strategist at ANZ in Singapore.
“We could see prices push up a little higher, probably to $1,672.90. And the bottom is probably around $1,665. It’s a very narrow trading range.”
In theory, a stronger US dollar makes bullion more expensive for holders of other currencies, while rising oil prices will lift gold’s status as a hedge against inflation, dealers said.
