Gold gained as the dollar plunged
Gold rises for the second day as the dollar declined, increasing the appeal of precious metals as an alternative investment.
The previous day, gold added $2.70 or 0.24% to close at $1133.77 an ounce. Gold Price was setin London on Monday at $1134.50 per ounce during the PM fixing; declining from $1135.75 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained unchanged at 1,112.83 metric tons on January 18.
Prices are now above $1100 level taking advantage of the dollar's slid against a basket of major currencies, seen by the dollar index, which slumped to 76.98 from the day's opening at 77.11. The green currency inclined only for one day since falling after the jobs report on January 8.
Spot gold is currently at $1138.31 an ounce, after reaching a high of $1140.56 and a low of $1132.85.
However, the metal failed to gain support from oil prices which slipped to $77.82 a barrel, as stocks dropped after spiking to the highest in nearly 16 months above $83 a barrel earlier this month. Crude prices fell, despite the improvement in industrial production in China.
In regards to other precious metals; platinum and palladium rose to the highest level in 17 months and 18 months respectively. The two metals that are used in car industry are getting advantage of the rebound in global demand. Governments all over the world launched programs to boost demand on new cars which in turn helped sales of new cars, especially Japanese cars in the U.S. In addition, the launch of new U.S.-based exchange-traded funds backed by the metals enhanced buying.
Platinum rose today to $1638.40 from the opening at $1631.40, while palladium inclined to $460.50 from $460.00.