Commodities: Gold a snip ahead with risk aversion potentially driving further gains

Gold was pricing a snip higher on Thursday afternoon with present risk aversion in the market potentially able to lift the nil-yielding precious metal higher in the short term.

At about 15:17 GMT, on Comex, gold was down 0.09% to $1251.70 an ounce, with silver up 0.52% to $17.67 an ounce and copper up 0.27% to 263.75 cents a pound.

"The risk-off trading environment has boosted appetite for safe-haven assets with gold becoming an investor's popular choice this week," said FXTM research analyst Lukman Otunuga.

He observed that prices had climbed to a three-week high above $1250, with dollar weakness fueling the upside momentum.

"Although Gold may find itself under pressure in the longer term when the dollar stabilises, risk aversion could uplift the yellow metal higher in the short term," said Otunuga.

He added a decisive breakout above $1250 may open a path towards $1260 for gold.

Accendo Markets analysts Mike van Dulken and Henry Croft said political uncertainty -- such as the US congressional vote, and French elections -- was supporting gold's price above $1245.

"The 200-day moving average at $1248 and 8-month falling highs at $1252, will need to be overcome for the precious metal's March rally to mount any charge towards $1260," he said.

Meantime, three-month industrial metals on London Metals Exchange were mostly firmer. Zinc led gains, followed by copper and tin. Aluminum was lower, however.

Nymex-priced WTI crude was down 0.44% to $47.83 a barrel. Intercontinental Exchange-traded Brent was 0.24% lower at $50.52 a barrel, having dipped briefly below $50 on Wednesday.

The black liquid's pricing has been under seige amid the global glut.

It was down again on Thursday, with no immediate end in sight to trader nerves about Opec's production-cut pledges, US shale output and rising stores in the US.

"Crude oil's bearish pressures continues despite correct bounce due to a short-squeeze," said SwissQuote in a research note.

"The commodity (WTI) had been unable to mount a serious challenge to resistance at $49.61," said SwissQuote, commenting that hourly support was at $47.09.

"Expected to see deeper selling pressures," it said in its now familiar warning on WTI's price.

Van Dulken and Croft point out that recently Brent had rallied to $51, while WTI had gained to $48.50, both classes of the black liquid thereafter trailing away.

"Continued US dollar weakness is helping to induce bullish appetite, although intersecting resistance at the aforementioned levels remains a hindrance."