PRECIOUS-Gold prices snap 4-day losing streak; focus on ECB meet

Reuters

Warning: This material has been prepared by a third party company, Reuters, which is independent of Davy. Davy has not reviewed the material and accepts no responsibility for errors or omissions, or for the information or opinions contained therein. It does not constitute investment advice.

    * Spot gold still targets $1,453/oz - technicals
    * Dollar steady as traders await Thursday's ECB meeting

 (Updates prices)
    By Eileen Soreng
    Sept 11 (Reuters) - Gold prices edged up on Wednesday,
snapping a four-day losing streak on technical buying, amid
expectations that the European Central Bank will dole out
stimulus and cut interest rates.
    Spot gold  XAU=  was up 0.3% at $1,490.27 per ounce, as of
0732 GMT. In the previous session, prices fell to their lowest
since Aug. 13 at $1,483.90. 
    U.S. gold futures  GCv1  were up 0.2% at $1,502.2 an ounce.
    "The ECB is expected to reduce further the interest rate
into negative territory... The meeting could serve as a
potential catalyst (for gold) and investors are already buying
into the rate cut expectations," said Margaret Yang Yan, a
market analyst at CMC Markets.
    Given that gold has had such a deep correction from its
recent peak, investors are buying on dips, Yan added. 
    Bullion prices have shed more than 4%, or over $60, since
scaling an over six-year peak of $1,557 on Sept. 4. 
    Risk sentiment got a lift ahead of monetary policy decisions
by the ECB on Thursday and the U.S. Federal Reserve next week,
with investors hoping for further easing amid a slowdown in
global growth.
    Market participants might be reluctant to commit to big
risk-on bets, which could nudge gold upwards amid
pre-positioning ahead of Thursday's event, said Ilya Spivak,
senior currency strategist, DailyFx.
    ECB policymakers are leaning toward a package that includes
a rate cut, a pledge to keep rates low for longer and
compensation for banks over the side-effects of negative rates,
five sources familiar with the discussion said last week.
 urn:newsml:reuters.com:*:nL3N25V39I
    Fundamental backdrop is still broadly gold-supportive
considering the main sources of risk aversion remain unresolved,
Spivak added.
    "Both Brexit and the U.S.-China trade war are ongoing
concerns, as is the broader slowdown in global growth ... That
probably encourages central banks to remain dovish."
    Gold prices gained about 18%, or over $200, since hitting
year's low of $1,265.85 on May 2. 
    On the trade front, a senior White House adviser tamped down
expectations on Tuesday for the next rounds of U.S.-China trade
talks, urging investors, businesses and the public to be patient
about resolving the trade dispute.  urn:newsml:reuters.com:*:nL2N2611SF
    Spot gold still targets $1,453, as it has cleared a support
at $1,497 per ounce, according to Reuters technical analyst Wang
Tao.  urn:newsml:reuters.com:*:nL3N2620VZ
    Meanwhile, the dollar index was steady  .DXY , while Asian
stock markets held firm and bond yields rose on Wednesday.
 USD/   MKTS/GLOB 
    Among other precious metals, silver  XAG=  rose 0.5% to
$18.09 per ounce, having hit a two-week low of $17.75 in the
previous session. 
    Palladium  XPD=  was trading flat at $1,560.96 per ounce,
while platinum  XPT=  gained 0.7% to $936.90.

 (Reporting by Eileen Soreng in Bengaluru, Editing by Sherry
Jacob-Phillips and Rashmi Aich)
 ((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223
8780, Outside U.S. +91 80 6749 6131; Reuters Messaging:
eileen.soreng.thomsonreuters.com@reuters.net))

Warning: This content may be provided by regulated and unregulated entities and is not created, reviewed or endorsed by Davy. It is provided for general information purposes only and does not constitute a recommendation or solicitation to purchase or sell any security or make any other type of investment or investment decision. Importantly, it does not constitute investment advice, as it does not contemplate the personal circumstances of any particular person or group of persons. Neither Davy nor the providers of the Third Party Content will be liable for any investment decision made based on the reliance on or use of such data, or any liability that may arise due to delays or interruptions in the delivery of the Third Party Content for any reason.