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Gold treads water amid lack of fresh cues


COMEX gold trades in a narrow range near $1290/oz amid lack of fresh cues. Failure to breach the key $1300/oz level has also resulted in listless trade in gold price.

Gold is rangebound amid mixed trade in US dollar and global equity market. The US dollar index trades mixed near 95.5 levels holding on to recent losses. Weighing on US dollar is Fed's patient stance on interest rate hikes and mixed US economic data. However, downside is limited by uncertainty about Brexit and ECB's concern about downside risk to the euro-zone economy.

Asian equity markets trade higher today despite losses in US market yesterday. Progress in US-China trade talks and expectations of slower rate hikes by Fed has lent support to equity markets. However, weighing on market sentiment are concerns about US government shutdown, uncertainty about Brexit ahead of a key parliamentary vote and slowdown in Chinese economy.

Gold may continue to be rangebound unless we see fresh selling pressure in US dollar or global equity market.

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