Commodities News
Gold Advances to the Largest Weekly Rise in 2 Months, Dollar, Stocks Dip
Gold futures gave back their early gains on Friday, firming after mixed data weakened the dollar in the morning and sending the metal to rise. Though profit taking had kicked in later in the session, it sent the commodity to negative territory.
The dollar and gold tend to trade inversely to each other.
According to Nasdaq, on the Comex of the New York Mercantile Exchange, February delivery gold futures were down 0.24% at $1,222.70, up from the session low of $1,215.30 and off the high of $1,229.50.
On Thursday, the February contract settled down 0.31%, standing at $1,225.60.
The futures were likely to get support at $1,186.40 per troy ounce, which was last Friday’s low, and the resistance at $1,239.00, the high of Tuesday.
The dollar has rallied in the recent months on expectations for US monetary policy to grow less accommodative while the Asian and European Central Banks move in the opposite direction, which has led to the softening of the prices of gold.
However, on Friday, mixed US data cooled the rally of the dollar and gave gold room to climb.
Economic Times quoted Daniel Briesemann, Commerzbank analyst as having said, “When the equity markets dropped quite sharply, precious metals soared, so there is definitely still the link between equities and gold in particular (due to) risk appetite among market players.”
He added, “Some of the equity markets had a decent run this year. We don’t expect this to be continued to the same extent next year, so this might give some tailwind to gold prices.”
Eli Tesfaye, senior market strategist for RJO Futures said, “What we’re looking at here is better retail sales. The better numbers basically are going to bolster the case for the Federal Reserve to be more hawkish going forward. That’s never good news for gold.”
To contact the reporter of the story: Jonathan Millet at john@forexminute.com
Source:venturebeat.com
script async src="//pagead2.googlesyndication.com/pagead/js/adsbygoogle.js"></script>
<!-- nomorefiatmoneyplease_sidebar-right-1_AdSense1_250x250_as -->
<ins class="adsbygoogle"
style="display:inline-block;width:250px;height:250px"
data-ad-client="ca-pub-9205484028477356"
data-ad-slot="1840165228"></ins>
<script>
(adsbygoogle = window.adsbygoogle || []).push({});
No comments:
Post a Comment