Gold prices extend their incline ahead of ECB decision and U.S. data
Gold prices are slightly up ahead of the European Central Bank interest rate decision in which they are expected to leave them steady at 1% while also today the focus is on the U.S. data. The precious metal climbed yesterday as a result of the weaker dollar therefore increasing demand on gold as an alternative investment.
The dollar continues to depreciate versus major currencies as risk averse investors are still in the market seeking higher yielding currencies which therefore weighs on the dollar's strength.
Wednesday, gold climbed $9.30 or 0.82% to close at $1137.82 an ounce as the dollar lost strength six major currencies which are measured by the Dollar Index, declined yesterday to close at 76.83 while recording a high of 77.14 and a low of 76.59.
Among other precious metals; platinum is traded at $1573.40; palladium at $423.50; silver at $18.49; while, copper is at $340.78. Turning to commodity futures we see yesterday, S&P GSCI closed at 528.59 points recording a high of 531.77 points and a low of 520.16 points while RJ/CRB Commodity closed at 285.14 points recording a high of 285.28 points and a low of 281.29.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, remained at 1,115.88 metric tons for. Gold was set in London on Wednesday at $1127.25 per ounce declining from $1132.75 per ounce during the AM fixing.
In addition, stocks in Asia jumped as a result Australia posting improvement in the job sector therefore giving more signs that the worst of this global recession is over. Also a survey by the Federal Reserve said that out of 12 districts, last month 10 of those say economic conditions improved, this helped boost confidence levels.
Turning to oil, we see that prices climbed supported by the rising stock market while investors are looking forward to companies' release of fourth quarter earnings. The rising stock market usually means investors are confidence about the nation which means increased demand on oil products, therefore aiding oil prices to climbing.
Currently, spot gold is traded at $1139.55 an ounce recording a high of $1145.52 an ounce and a low of $1136.35 an ounce.