Gold prices rebound from trading close to three-month low
Precious-metal prices are rallying, rebounding from trading close to a three-month low as the dollar lost strength in markets versus major currencies; therefore increasing demand on gold as an alternative investment. Gold prices were heavily pressured yesterday, as the Federal Reserve Bank yesterday hinted that it might raise interest rates as the U.S. economy shows increasing signs of recovery.
Yesterday, gold fell $6.90 or 0.64% to close at $1070.70 an ounce, while the dollar gained strength against six major currencies that are measured by the Dollar Index, inclined yesterday to close at 80.02 while recording a high of 80.30 and a low of 79.65.
Among other precious metals; platinum is traded at $1512.00; palladium at $412.50; silver at $15.38; while, copper is at $302.96. Turning to commodity futures we see yesterday; S&P GSCI closed at 497.52 points recording a high of 497.60 points and a low of 496.86 points; while the RJ/CRB Commodity closed at 266.23 points recording a high of 266.89 points and a low of 262.56.
SPDR gold trust yesterday, the largest exchange-traded fund backed by bullion in the world, remained unchanged at 1,106.378 metric tons. Gold was set in London on Wednesday at $1069.50 per ounce, declining from $1075.50 per ounce during the AM fixing.
In addition, stocks in Asia extended their climb for the third daydue tohigher material producers and bank stocks inclining; therefore helping overall Asian stocks to climb. Also, the number of Australian jobs increased while inflation was lower than presumed in China, thereby easing worries that therigid monetary policy in the economy might negatively impact growth.
Turning to oil, we see that prices continue their climb for the fourth day on anticipations oil demand will rise this year; therefore encouraging investors to enter oil markets, as they seek potential in profits. However, oil prices are suppotred by the funds flying into the oil markets.
Currently, spot gold is traded at $1078.30 an ounce recording a high of $1081.32 an ounce and a low of $1071.40 an ounce.