Gold Little Changed on Wednesday
Gold little changed after declining for two consecutive days as the dollar is still holding its gains, thereby preventing gold from rising.
Yesterday, gold shed $21.10 or 0.74% to close at $1083.67 an ounce. Gold Price was setin London on Tuesday at $1084.00 per ounce declining from $1094.25 per ounce during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained at 1,132.70 metric tons on December 22.
The dollar's strength is capping any advance for gold as it reduces its appeal as an alternative investment. The dollar index, a gauge of the dollar's movements against a basket of major currencies, is currently traded at 78.23 close to 2-month high versus the yen and more than 3 months high against the euro.
Gold fell today to $1085.29 an ounce after closing below support at $1100 level on Monday, while recording a high of $1088.42 and a low of $1082.27. Prices are continuing their fall losing more than 11% since reaching the peak at $1226.25 on signs of recovery from global economies, especially the U.S.
Moreover, U.S. stocks rallied where S&P rose to 15-month high and Asian stocks followed the U.S. suit. Hopes of strong recovery next year is boosting demand on risky assets.
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Important U.S. data related to spending, confidence, and housing may change the direction of market when released later on today. The previous day, U.S. GDP fell to 2.2%, below estimates of 2.8%, but the upbeat housing data outweighed the negative impact of the growth news.
Crude oil, on the other hand, was little changed after OPEC yesterday kept production unchanged. The black gold is currently traded at $74.65 after recording a high 74.77 and a low of $74.25. As long as crude prices are between $70 and $80 OPEC will not change its production.
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