Gold inclines for the third day
Precious-Gold rose for the third day, achieving the highest intraday advance in nearly 2 weeks, as the dollar slipped against majors which increased the appeal of the shiny metal as an alternative investment.
Yesterday, gold added $7.80 or 0.71% to close at $1105.27 an ounce. Gold Price was setin London on Tuesday at $1111.00 per ounce during the PM fixing declining from $1114.00 at the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, remained unchanged at 1,111.92 metric tons on February 2.
Meanwhile, gold is tracking the dollar movements as it advanced when the dollar stopped its rally against majors. The dollar index, a gauge of the dollar's movements versus six major currencies, plunged for the third day to 78.82 from the day's opening at 78.98. The greenback halted its rise when it hit the highest in 7-month against the euro despite the upbeat earnings and improved U.S. data. However, the dollar may rebound if the U.S. job report due on Friday showed progress in the labor market.
Recently, the data released is showing improvement and expansion in the New Year. Manufacturing data released this week showed expansion ahead of the release of services data today. The improved outlook and earnings boosted equities in the last three sessions. However, gold is mostly impacted by the dollar movements.
Spot gold inclined to $1120.64 an ounce today, recording a high of $1123.58 and a low of $1111.02. The yellow metal is facing resistance at $1127.00 while gaining support at $1109.00.
With regard to other precious metals, platinum edged up to $1577.40 from the opening at $1567.90, whereas palladium rose to $442.00 from $439.70.