Source : yahoo news
Gold prices aggressively retraced today due to the strengthening of the US dollar and profit actuality. Silver goes down by Rs 1000 per kg.
Gold prices came under pressure on Monday and were bound to break a four-session gain from the previous week. As the investors turned their attention to new economic guidance coming from the US, they were disappointed with a stronger US dollar and profit-taking that led to the precious metals sell-off.
According to as close as 0204 GMT, capitals’ natural gold fell by 0.7 percent at $2636.38 per ounce.
After receiving a seasonal settlement level of $2658.80, American gold futures for sale dominated the lower session by around 0.8 percent.
According to IG market strategist Yeap Jun Rong, “The yellow metal has been facing some profit taking in recent times due to ease of some of the geopolitical risk premium by the market participants as well as strengthening in the US dollar.”
As a result, holders of other currencies had to bear the cost of gold, as the dollar index rose by 0.5 percent.
A stronger US dollar tends to lead to higher prices for the metal while higher rates of return usually weigh on gold as it provides no yield.
Weakness in gold last week was largely the result of a decreased appetite for safe havens following the ceasefire agreed between Israel and Hezbollah under US auspices mid week. Still, the ongoing conflict regarding Russia’s illegal invasion of Ukraine does help to underpin demand for safe haven assets like gold.
Market participants look forward to US nonfarm payroll figures this week that could have bearing on the Fed’s interest rate decision come December 18. The markets are betting on about a 67% probability that the central bank will reduce benchmark interest rates by 25 bps. In general lower interest rates help in supporting gold prices.
Genre : International, Economics
Tags : Price, Gold, Stocks, US, Economy
