Gold prices extend incline vs. weak dollar
Gold prices continued to rise as the dollar declined in the markets therefore increasing demand on gold as an alternative investment, as commodities climbed, we saw platinum reach a two-month high. Gold and the dollar have an inverse relationship.
The dollar declined versus major currencies as Federal Reserve Bank officials yesterday pledged to leave interest rates near zero for an extended period as a way to continue providing growth in the U.S. economy.
Yesterday, gold rose $17.10 or 1.54% to close at $1125.32 an ounce while the dollar lost strength six major currencies which are measured by the Dollar Index, declined to close at 79.66 while recording a high of 80.32 and a low of 79.62.
Among other precious metals; platinum is traded at $1620.00; palladium at $460.00; silver at $17.28; while, copper is at $333.80. Turning to commodity futures we see last yesterday, S&P GSCI closed at 527.35 points recording a high of 527.68 points and a low of 527.22 points while RJ/CRB Commodity closed at 273.54 points recording a high of 273.93 points and a low of 270.79.
Gold was set in London on Tuesday at $1124.75 per ounce inclining from $1113.25 per ounce during the AM fixing.
In addition, stocks in Asia climbed as a result of investors interested more in higher yielding assets while selling lower yielding assets, therefore boosting the overall stock market.
Turning to oil, we see that prices are extending their incline as the dollar's is weakening therefore, oil as an investment becomes cheaper for investors especially since commodities are priced in dollars.
Currently, spot gold is traded at $1129.23 an ounce recording a high of $1132.75 an ounce and a low of $1125.75 an ounce.