Gold rebounds slightly from the worst decline in 60 days
The yellow metal surged today asthe U.S.dollar slipped, increasing the appeal of the shiny metal as an alternative investment.
Yesterday, gold witnessed its sharpest fall in 2 months as the U.S. dollar strengthened against majors in an upside correctional movement after touching its lowest this year against a basket of major currencies. The dollar's rebound sapped demand on the metal, especially from other currencies holders as it became more expensive.
Moreover, on Thursday, gold shed $14.50 or 1.44% to close at $993.65 an ounce, below $1000 for the first time after 9 days. Gold Prices were setin
Today, gold inclined to $996.65, recording a high of $997.89 and a low of $991.55 as the dollar slides versus six majorcurrencies as indicated by the dollar index which is now at 76.73 compared with the opening at 76.86. On the other hand, oil rose to $66.30 a barrel from the opening at 65.97, the strongest dive in 8 weeks, boosting further demand on gold as an inflation hedge.
Meanwhile, there are fears in markets after the drop in U.S. existing home sales the previous day and after announcements of the FED that despite the growth witnessed it is not optimal to remove stimulus packages since jobless rate is still at 25-year high. The FOMC expects to keep the interest rate unchanged from longer period. Eyes are on the G20 meeting today;where leaders are expected to have the same opinion regarding tightening capital requirements.
Later on today, the
Gold prices may gain support at $992 an ounce, while it faces the coming resistance at $1002.