Gold rebounds towards 18-month high
Precious-Gold rebounded on Thursday, after yesterday's drop, as the U.S. dollar retreated, spurring demand on the shiny metal as an alternative investment.
On Wednesday, gold shed $6.40 or 0.63% to close at $1008.27 an ounce. Gold Prices were setin
The previous day, gold faced some sell off by investors after approaching an 18-month high as the U.S. dollar strengthened, snapping some of its earlier losses. The FOMC, as expected, kept the interest rate unchanged and upgraded its assessment for the economy, but the FED is closer to withdrawing the stimulus. Stopping methods of quantitative easing in the upcoming period, after the improvement seen, may reduce the appeal of the shiny metal as an inflation hedge.
Stocks sagged in the
What is keeping gold prices above the $1000 levels is the weak dollar, which slipped once again today. The dollar index, a gauge of the dollar's strength versus a basket of major currencies, is now at 76.16 compared with the opening at 76.35. The green currency is now close to its lowest level this year, which may encourage buyers by other currencies to purchase gold as it becomes cheaper.
Moreover, eyes today are on the G20 in their first day of the meeting, where they are anticipated to continue their policies by reviving growth and lowering trade imbalances. Also, today investors are awaiting important
Spot gold is now being traded at $1013.40 an ounce, recording a high of $1014.25 and a low of $1006.45. Among other precious metals, platinum is traded at $1330.50; palladium is now at $295; and spot silver is at 16.84.