Gold prices rebound as dollar losses grounds vs. majors
Gold prices today are rebounding after they were trading close a three-month low, as a result of the federal currency climbing versus major currencies, therefore dampening demand on 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 boosts the dollar in the markets against major currencies.
Friday, gold climbed $1.80 or 0.17% to close at $1065.00 an ounce while the dollar gained strength six major currencies which are measured by the Dollar Index, inclined Friday to close at 80.31 while recording a high of 80.67 and a low of 79.95.
Among other precious metals; platinum is traded at $1490.00; palladium at $405.00; silver at $15.21; while, copper is at $291.37. Turning to commodity futures we see Friday, S&P GSCI closed at 475.65 points recording a high of 489.29 points and a low of 468.44 points while RJ/CRB Commodity closed at 258.55 points recording a high of 264.42 points and a low of 256.89.
SPDR gold trust on February 5th 2010, the largest exchange-traded fund backed by bullion in the world, rose 0.2 percent to 1,106.378 metric tons. Gold was set in London on Friday at $1058.00 per ounce inclining from $1052.25 per ounce during the AM fixing.
In addition, stocks in Asia declined as a result of electronic producer companies posting losses while European finance ministers did not announce new measures that would help narrow budget deficits around Europe.
Turning to oil, we see that prices are rising rebounding from a seven week low on anticipations that the demand levels are going to incline based on an enhanced global outlook, especially as the U.S. economy released better than projected jobs report on Friday which meant that demand was going to increase therefore attracting investors to oil markets.
Currently, spot gold is traded at $1073.16 an ounce recording a high of $1073.70 an ounce and a low of $1064.85 an ounce.