LONDON (MarketWatch) � Gold futures struggled for direction on Thursday, with the nomination of Haruhiko Kuroda to the post of governor at the Bank of Japan feeding dovish monetary-policy hopes, while a firmer dollar added pressure on most metals prices.
Gold for delivery in April GCJ3 fell $4.30, or 0.3%, to $1,597.50, but swung between small gains and losses throughout the session.
Reuters Enlarge Image Japan has nominated Haruhiko Kuroda as the country�s new central bank chief.Thursday�s subtle moves came as Japan Prime Minister Shinzo Abe submitted the government�s choice for Bank of Japan governor to a parliamentary committee. See: Tokyo nominates Haruhiko Kuroda as BOJ chief
Since he was elected late last year, Abe has been pressuring the central bank to take a more aggressive stance on deflation, and Kuroda recently stressed that the BOJ should increase and diversify its asset-buying program, its main policy tool with interest rates near zero.
The dollar gained a bit against the yen after the news, a move that could benefit gold, according to one strategist.
�Both the Japanese yen and the Swiss franc are historically viewed as safe-haven assets, and depreciation of the two may lead investors to choose bullion, a currency that cannot be printed, which is also regarded as a safe-haven asset,� said HSBC metal analyst James Steel.
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A firmer dollar also has the ability to weigh on dollar-denominated commodities, as they become more expense for other currency holders. The ICE dollar index DXY , which measures the greenback against a basket of six other currencies rose to 81.67 from with 81.552 in New York on Wednesday, adding pressure on the yellow metal. See: Dollar up as central bankers defend loose policies
Thursday�s gold weakness marked the second straight day of losses, but analysts at Commerzbank said they didn�t �believe the current weakness in the price of gold to be sustainable.�
�A number of aspects point towards higher gold prices: the Indian finance minister, for instance, announced no further hikes in gold import duties in his annual budget speech today. Coupled with the lower local prices of late, this could give rise to growing gold demand in India in future,� they said in a note.
Around the wider metals complex, May silver SIK3 �slipped 7 cents to $28.92 an ounce, erasing a gain from earlier in the session
�Silver is trading in no-man�s land, so it will most likely follow price action in gold, although there is some resistance seen around $29.60 to $29.90,� said Fawad Razaqzada, technical analyst at GFT Markets.
May copper HGK3 �traded 1 cent lower at $3.56 a pound.
Palladium for delivery in June PAM3 PAM3 erased $2 to $743.55 an ounce. Platinum for April delivery PLJ3 �shaved off $5.30 to $1,594.30 an ounce.
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