Gold prices inch higher as federal currency slips
Gold prices today are leaping as investors are heading towards higher yielding assets while selling lower yielding assets, which therefore reduces the appeal of the dollar and increases the appeal of commodities as an alternative investment.
Yesterday, gold fell $9.60 or 0.88% to close at $1088.00 an ounce as the dollar gained strength versus six major currencies which are measured by the Dollar Index which inclined Wednesday to close at 78.71 while recording a high of 78.84 and a low of 78.36.
Among other precious metals; platinum is traded at $1515.90; palladium at $417.00; silver at $16.58; while, copper is at $321.65. Turning to commodity futures we see yesterday, S&P GSCI closed at 492.25 points recording a high of 500.54 points and a low of 488.17 points while RJ/CRB Commodity closed at 268.76 points recording a high of 274.04 points and a low of 267.80.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, stood steady at 1,111.92 metric tons yesterday. Gold was set in London on Wednesday at $1094.75 per ounce which was unchanged during the AM fixing.
Furthermore, stocks in Asia climbed to mark the first time in nine days as a result of optimism in the markets after U.S. President Barack Obama stated that he wants to introduce a new package which includes tax reductions and more spending to revive economic growth.
Turning to oil, we see that prices are inclining after there the optimism in the markets, especially as the biggest oil consumer, the U.S. economy is taking more actions to end the worst economic recession since World War II.
Currently, spot gold is traded at $1092.95 an ounce recording a high of $1093.25 an ounce and a low of $1081.05 an ounce.