Gold, after gaining yesterday, slightly changed todaydue to theweak trading in markets led by the Holiday season, and since the year is coming to an end; investors are closing in on deals and thereforemeaning low volumes in markets.
Investors are waiting for next year,since projections show that inflation will spike as a result of the current stimulus plans used by major governments around the world, as theyinject money in markets which on the long run could trigger inflation. Precious metal is known as a hedge against inflation, which is why we expect gold prices to climb next year.
Monday, gold rose $1.70 or 0.15% to close at $1106.85 an ounce as the dollar fell against six major currencies, which are gauged by the Dollar Index, declined today to 77.40 while recording a high of 77.75 and a low of 77.38.
The U.S. economy today is releasing its consumer confidence, where expectations show us that it will incline to 53.0 in December from the prior 49.5, if the data is to come in upbeat it will provide support for the dollar to incline, since markets are currently focusing on the U.S. economy, and if bright they maybecome more interested in the dollar versus major currencies.
Looking at other precious metals, we currently see platinum traded at $1474.90 while so far recording a high of $1476.90 and a low of $1468.40. Palladium is being traded at $385.50 recording a high of $386.50 and a low of $383.50; while Copper is currently at $330.10 recording a high of $330.60 and a low of $329.15.
This morning we saw Asian stocks climb for the second day as a result of higher metal prices, while there still isoptimism in markets from China raising its economic growth forecasts yesterday, especially since today there is expectations that retailers in Japan might raise their profits.
Turning to oil, we see that they are steady trading as markets stated earlier that they are calm; while markets are waiting for tomorrow's EIA report that is to be released from the United States, since this usually gives us a perspective on oil inventories in the world's biggest crude consumer.
Currently, spot gold is traded at $1105.14 an ounce recording a high of $1107.85 an ounce and a low of $1102.02 an ounce.
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