Gold prices rise on worries regarding lending in China
The precious-metal climbed as investors turned to gold seeking a safe-haven investment especially after there are anticipations that China might tighten lending, therefore meaning weaker growth in China and around the world as many economies depend on exporting to China.
The dollar today is rallying versus major currencies but not based on its strength but led from the weakness of major currencies, as the euro is depreciating on expectations the European finance ministers are not going to be aiding Greece into narrowing their budget deficit; while the pound slipped after Moody's Investor Services said UK is at the edge of losing its AAA ratings.
Friday, gold fell $8.10 or 0.73% to close at $1101.95 an ounce while the dollar lost strength against the six major currencies tracked by the Dollar Index, which declined Friday to close at 79.80 while recording a high of 80.32 and a low of 79.68.
Among other precious metals; platinum is traded at $1606.50 from $1604.00; palladium at $457.50 from $458.20; silver at $17.03 from $17.04; while, copper is at $333.77 from $334.36. Turning to commodity futures we see last Friday, S&P GSCI closed at 523.82 points recording a high of 524.11 points and a low of 523.34 points while RJ/CRB Commodity closed at 273.31 points recording a high of 275.26 points and a low of 272.14.
SPDR gold trust fund, the largest exchange-traded fund backed by bullion in the world, stood steady at 1,115.51 metric tons. Gold was set in London on Friday at $1106.25 per ounce declining from $1118.75 per ounce during the AM fixing.
In addition, stocks in Asia declined as a result of mentioned reasons of the speculations of China putting a lid on lending, therefore investors become worried about the outlook for the global economy causing them to step out of stock markets.
Turning to oil, we see that prices are slightly changed today after they were declining on anticipations that OPEC supplies will surpass demand, as there will be excessive supply in economies while demand is still pressured from the global downswing.
Currently, spot gold is traded at $1104.96 an ounce recording a high of $1106.67 an ounce and a low of $1100.60 an ounce.