Precious metal rises on higher demand
The precious metal extended its gains from yesterday, while continuing the highest level in more than a month on anticipations that the dollar will resume to depreciate in markets versus a basket of major currencies; therefore increasing demand on gold and other metals as an alternative investment.
Monday, gold climbed $13.00 or 1.14% to close at $1150.70 an ounce, as the dollar lost strength six major currencies which are measured by the Dollar Index declined yesterday to close at 77.02, while recording a high of 77.46 and a low of 76.78.
The dollar in markets today has started to gain some grounds on anticipations that a global economic recovery is taking longer to happen, therefore decreases the demand on higher yielding assets, while increasing demand on the federal currency as investors seek safety.
Among other precious metals; platinum is traded at $1612.40 as it rose to a 17-month high on positive outlook for car sales in China; palladium is at $435.50; silver at $18.66; while, copper is at $343.15. Turning to commodity futures we see yesterday; S&P GSCI closed at 541.57 points recording a high of 550.38 points and a low of 540.09 points; while RJ/CRB Commodity closed at 289.39 points recording a high of 293.03 points and a low of 289.15.
Gold was set in London on Monday at $1153.00 per ounce declining from $1158.00 per ounce during the AM fixing.
Furthermore, stocks in Asia climbed as a result of higher auto sales in China, while Infosys Technologies Ltd. posted better than projected earnings, therefore increased optimism that economic growth in China will be higher than other economies in the world.
Currently, spot gold is traded at $1152.45 an ounce recording a high of $1158.08 an ounce and a low of $1148.27 an ounce.