Gold broadly steady;investors look to physical demand from India - 27 Oct 2016

Commodity Intraday Tips

Physical demand ahead of the festival season in India kept gold prices steady on Thursday amid a firm dollar, while markets awaited more direction on a rate hike from the US Federal Reserve. Bullion is expected to gain over the next few days on account of festival buying in India, the world's second-largest consumer of gold. The metal is traditionally given as a gift during festivals such as Dhanteras and Diwali.

"Investors look to India for signs of increasing physical demand," analysts at Australia's ANZ bank said in a note on Thursday.

Spot gold was down 0.1 percent to USD 1,265.74 an ounce by 0408 GMT.

US gold futures were little changed at USD 1,266.30 an ounce.

"While the Indian physical buying is supporting prices, the liquidation of longs last week has put some break on the upside movement and gold prices will stay within USD 1,260-USD 1,280 range for the time being," said Ronald Leung, chief dealer at Lee Cheong Gold Dealers in Hong Kong.

"The dollar is a bit stronger and there is no sign of gold going above USD 1,300 and we are seeing some liquidations in the ETFs,"

"The markets are waiting for the FOMC meeting next week and elections,"

The Bank of Japan is likely to abstain from expanding stimulus next week, and a Reuters poll showed the Bank of England is not expected to ease policy until early 2017.

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