Gold prices rebound from decline
Once again, the appeal of gold as an investment increases as there are expectations that demand on metal will increase therefore investors enter the markets seeking a potential in profits which supports gold prices to incline. Also gold prices are rising as a result of the declining dollar versus major currencies.
The dollar is losing its strength due to the U.S. economy later on today releasing its jobs report with expectations showing that there will shed of 68 thousand jobs which is worse than the previous shed of 20 thousand. As the projections for the job sector to worsen, causes investors to sell the dollar as they become disappointed with the outlook of the U.S. economy.
Yesterday, gold shed $7.10 or 0.62% to close at $1132.00 an ounce while the dollar gained strength versus six major currencies which are measured by the Dollar Index, inclined yesterday to close at 80.53 while recording a high of 80.66 and a low of 79.93.
Among other precious metals; platinum is traded at $1573.50; palladium at $463.00; silver at $17.22; while, copper is at $338.50. Turning to commodity futures we see yesterday, S&P GSCI closed at 519.73 points recording a high of 526.28 points and a low of 518.10 points while RJ/CRB Commodity closed at 274.80 points recording a high of 277.71 points and a low of 274.01.
SPDR gold trust yesterday, the largest exchange-traded fund backed by bullion in the world, remained unchanged at 1,115.511 metric tons. Gold was set in London yesterday at $1134.50 per ounce declining from $1136.25 per ounce during the AM fixing.
In addition, stocks in Asia inclined after the yen lost momentum in the markets on anticipations that the Bank of Japan will extend their stimulus measures to continue providing growth in Japan.
Furthermore, oil, we see that prices are inching higher to mark the third consecutive weekly incline on anticipations that demand on fuel will increase especially from the world's biggest oil consumer, the U.S. economy as they continue to release economic data that shows that conditions are improving.
Currently, spot gold is traded at $1134.89 an ounce recording a high of $1135.45 an ounce and a low of $1130.50 an ounce.