Gold Steady Below $1280 as Dollar Strength Hurts Demand

Gold traded below a four-month high as the dollar strengthened for a third day and technical charts signaled that prices may be set to reverse. Platinum dropped, while palladium climbed.

Bullion for immediate delivery traded at $1,276.48 an ounce at 9:43 a.m. on Tuesday in Singapore from $1,275.65 a day earlier, according to Bloomberg generic pricing. The metal rose on Jan. 19 to $1,283, the highest level since Sept. 2, after the Swiss National Bank ended the franc’s cap against the euro on Jan. 15, roiling markets and boosting haven demand.

Gold has risen 7.8 percent this year amid concern that global growth is faltering from Europe to China. Bullion’s rally pushed the 14-day relative-strength index near the level of 70 that signals a price reversal to some investors. The European Central Bank may announce asset purchases on Jan. 22 before a Greek election on Jan. 25, sending the Bloomberg Dollar Spot Index toward the highest close in a week.

Bloomberg

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