Home News Commodities Gold prices remain stable, hovering near a three-week low

Gold prices remain stable, hovering near a three-week low

Gold prices remain stable on Tuesday, hovering near a three-week low touched in the previous session.

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Gold prices remain stable on Tuesday, hovering near a three-week low touched in the previous session. The strong dollar limited gains for the precious metal, which was drawing support from mounting concerns of a global economic slowdown. Gold prices had been rising in North American and late London trade, trading at 1,280 USD per ounce, in the range of 1,283-1,276 USD per ounce.

Gold prices edged down on Monday, erasing 2019’s Dollar gains-to-date after the metal’s No.1 consumer nation China posted its slowest economic growth in nearly three decades.

Today, the price of spot gold was mostly unchanged at 1,279.68 USD per ounce, after touching its lowest since December 28 at 1,276.31 USD on Monday. The US gold futures fell by 0.3% to 1,279.40 USD per ounce.

Gold has become a victim of a stronger greenback in the short term. A weaker Euro and concerns around growth in Europe have given a leg up to the US dollar, pushing gold prices down below the key level of 1,280 USD.

Meanwhile, the spot price of palladium, which hit a record high of 1,434.50 USD last week driven by a sustained deficit and rising demand, stood firm at 1,363.60 USD per ounce.

The price of silver rose by 0.1% to 15.23 USD per ounce while platinum was up by 0.2% to 792 USD per ounce.

Gold technical analysis

Gold has started to test below the 21-D SMA at 1,281 USD and below the pivot of 1,284 USD. The level of 1,280 USD now seems to protect the immediate downside, which if broken might turn the commodity vulnerable to retest 1,277-1,276 USD horizontal support before eventually falling to the 1,270-1,269 USD region.

gold futures

On the upside, immediate resistance is pegged near the 1,286 USD area, above which the positive momentum could further get extended towards 1,290 USD intermediate hurdle en-route the 1,294-1,295 USD supply zone.

The large gold speculative positions have been on the rise. There are a strong official sector gold purchases, which open up the possibility that prices can move significantly above our projected 1,400 USD per ounce in late 2020, should central banks catch the “gold bug”.

Turkey’s gold production rose by 20% in 2018

Gold production in Turkey has risen by 20% in 2018 compared to the previous year, according to the Ministry of Energy and Natural Resources.

The increased production contributes to reducing the country’s current account deficit by approximately 200 million USD, revealed the Deputy Minister of Energy and Natural Resources, Mithat Cansiz. Turkey reported a current account surplus of 986 million USD in November, which is in sharp contrast to last year’s deficit of 4.2 billion USD, according to the Central Bank of Turkey. This is the fourth consecutive month in which the country’s balance of payments is positive.

Excluding gold and energy, in November the current account balance posted a surplus of 4.5 billion USD, improving from a deficit of 898 million USD in the same month of 2017.

Turkey’s gold production started in 2001. The highest production level was reached in 2013 – 33.5 tonnes. In 2017, it decreases to 22.5 tons, and in 2018 again rises to 27.1 tons. At the end of last year, the country set up a new underground resource development company to work in Central Asia and Africa.

With ongoing projects, Turkey’s production is expected to reach 30 tonnes this year and 35 tonnes in 2020. With the introduction of the necessary legislation and incentive mechanisms, Turkey seeks to achieve 50-60 tonnes of gold mining by 2023.