Gold prices decline on strong dollar
Precious metal prices declined for the first time this week as a result of investors locking in on profits while on the other hand, we saw the dollar rally in the markets versus major currencies, therefore reducing the appeal of gold as an alternative investment.
As the euro tumbled versus the dollar on extended worries of Greece's debt alongside anticipations that the European Central Bank (ECB) will take longer than presumed to exit the stimulus measures, gave support to the dollar to surge in the markets.
Yesterday, gold gained $5.10 or 0.45% to close at $1139.70 an ounce while the dollar lost strength six major currencies which are measured by the Dollar Index, declined yesterday to close at 80.00 while recording a high of 80.29 and a low of 79.93.
Among other precious metals; platinum is traded at $1568.00; palladium at $450.00; silver at $17.14; while, copper is at $338.43. Turning to commodity futures we see yesterday, S&P GSCI closed at 525.44 points recording a high of 527.08 points and a low of 518.58 points while RJ/CRB Commodity closed at 277.71 points recording a high of 277.91 points and a low of 267.89.
SPDR gold trust yesterday, the largest exchange-traded fund backed by bullion in the world, rose to 1,115.511 metric tons from 1,111.556. Gold was set in London yesterday at $1136.50 per ounce inclining from $1136.25 per ounce during the AM fixing.
In addition, stocks in Asia declined for the first day this week as the Industrial Bank Co. expects weaker lending and a strong yen which therefore means will weigh on exports, scaring investors from the higher yielding assets.
Furthermore, oil, we see that prices are slipping as the dollar climbs. As oil is priced in dollars, therefore oil becomes more expensive for investors as an investment.
Currently, spot gold is traded at $1137.06 an ounce recording a high of $1140.37 an ounce and a low of $1132.70 an ounce.