Gold's gains capped by the dollar's rally
Precious-Gold slipped little changed on Friday as the U.S. dollar continued its advance against majors after the FED unexpectedly raised its discount rate.
Yesterday, gold shed $1.30 or 0.12% to close at $1108.50 an ounce. Gold Price was setin London on Thursday at $1018.00 per ounce during the PM fixing inclining from $1105.50 during the AM fixing. SPDR gold trust, the world's largest exchange-traded fund backed by bullion, stood at to 1,109.42 metric tons on February 18.
Spot gold is traded at $1110.16 an ounce, above strong resistance at $1100.00, after recording a high of $1110.46 and a low of $1099.625. The shiny metal halted its weekly advance as the dollar rebounded strongly against majors yesterday after the FED surprisingly raised the discount rate from 0.5 to 0.75, which raised speculations the U.S. will withdraw stimulus faster than other major economies.
The sudden decision caused Asian stocks to fall today to the most in two weeks, where the MSCI Asia Pacific Index dropped 2.3% to 115.16 at 5:21 p.m., losing more than 9% from its 17-month high reached mid January. European stocks followed the Asian suit, stopping its advance this week.
The dollar index, which tracks the dollar movements against a basket of major currencies, bounced for the second day to 80.20, reaching the highest in nine months versus the euro, after breaching strong resistance at 80.70, which reduced demand on all dollar-denominated commodities. Oil declined to $78.15 a barrel from yesterday's closing at $78.37.
With regard to other precious metals, platinum edged up to $1507.50 from the opening at $1505.50; palladium declined to $426.00 from $426.80; and silver inclined to $15.90 from $15.80.