Once again as dollar resumes incline, gold prices rise
Gold prices today extend their declines for the fourth day although they move away from trading close to a three-month low, as the dollar continued to incline in the markets therefore reducing the appeal of gold as an alternative investment.
When there are worries in the markets, investors tend to turn away from higher yielding assets and more towards lower yielding assets, which therefore supports the dollar in the markets versus major currencies.
Yesterday, gold fell $1.80 or 0.17% to close at $1086.67 an ounce as the dollar gained strength six major currencies which are measured by the Dollar Index, inclined to close at 78.92 while recording a high of 79.06 and a low of 78.53.
Among other precious metals; platinum is traded at $1507.40; palladium at $416.00; silver at $16.15; while, copper is at $310.13. Turning to commodity futures we see yesterday, S&P GSCI closed at 490.05 points recording a high of 495.57 points and a low of 486.62 points while RJ/CRB Commodity closed at 267.58 points recording a high of 269.84 points and a low of 266.08.
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 Thursday at $1088.00 per ounce declining from $1091.75 per ounce during the AM fixing.
In addition, stocks in Asia shed the most points marking the most weekly declines since March as a result of the U.S. releasing its jobless claims showing that they were higher than what the markets were presuming. Also technology companies slipped in the markets therefore further weighing on stock markets.
Turning to oil, we see that prices fell as the dollar appreciated in the markets therefore making oil as an investment more expensive for traders. There are current worries in the market that an economic recovery is taking place but at a slow pace, therefore meaning weaker demand on oil which causes investors to flee oil markets in fears of future decline of oil prices.
Currently, spot gold is traded at $1082.25 an ounce recording a high of $1087.42 an ounce and a low of $1079.54 an ounce.