Gold declines on profit taking and dollar's advance
Gold declines after breaching $1100 level which encouraged some investors to sell the metal and reap profits. On the other hand, the dollar's incline capped demand on the shiny metal as an alternative investment.
Spot gold is currently traded at $1132.50 an ounce after recording a high of $1138.92 and a low of $1130.80.
The previous day, gold advanced $20.90 or 1.87% to close at $1138.02 an ounce. Gold Price was setin London on Wednesday at $1130.00 per ounce during the PM fixing inclining from $1125.00 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, slipped to 1,126.48 on January 6 from 1,128.74 metric tons.
With regard to the green currency, it strengthened today after falling last night after the FOMC meeting where members debated the economy's ability to stand without stimulus. The greenback rebounded today ahead of the U.S. jobless claims and the famous NFP report tomorrow. The dollar gained after the December's jobs report so we might see changes after the release of the news. Currently, the dollar index is at 77.72 from the day's opening at 77.45.
Moreover, gold failed to gain support from oil prices which also dropped after reaching its highest in almost 14 months above $83 a barrel as U.S. stockpiles rose and stocks sagged. Asian shares dropped today on concerns with regard the Japanese currency strength.
Other precious metals such as platinum and palladium declined today after climbing yesterday. The two metals which are used in car production took a boost from the increase in sales of Japanese and Korean autos in the U.S. Thus, as economies improve the two metals are expected to advance more.