Gold begins week rebounding from one-month low
The precious-metal prices climbed as investors turned to gold seeking a safe-haven investment especially after U.S. President Barack Obama's is planning to limit banks to be involved in risky transactions. As investors start buying gold, supports prices to incline from the one-month low.
The dollar is depreciating in the markets ahead of the U.S. economy releasing its existing home sales showing that they fell in December based on expectations, as existing home sales decline, meant that the reason behind the downfall of the nation is still not solved, therefore causing investors to sell dollar in disappointment.
Friday, gold fell $1.60 or 0.15% to close at $1091.50 an ounce as the dollar lost strength six major currencies which are measured by the Dollar Index, declined Friday to close at 78.26 while recording a high of 78.52 and a low of 78.03.
Among other precious metals; platinum is traded at $1540.40; palladium at $435.50; silver at $17.09; while, copper is at $334.05. Turning to commodity futures we see last week Friday, S&P GSCI closed at 501.53 points recording a high of 509.64 points and a low of 500.74 points while RJ/CRB Commodity closed at 275.56 points recording a high of 277.51 points and a low of 275.08.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, stood steady at 1,111.92 metric tons. Gold was set in London on Thursday at $1084.00 per ounce declining from $1096.50 per ounce during the AM fixing.
In addition, stocks in Asia declined for the sixth consecutive day marking the longest declines in a row since July, as a result of worries that financial institutions in China, seek more capital since earnings are not enough to cover dividends for shareholders.
Turning to oil, we see that prices are trading close to a one-month low as stock markets decline therefore commodity producer companies' stocks decline. Also there are worries that the second biggest oil consumer, China, might increase interest rates therefore weighing on growth levels.
Currently, spot gold is traded at $1100.15 an ounce recording a high of $1103.27 an ounce and a low of $1092.10 an ounce.