Precious metal prices are resuming decline
Black hawk prices are declining for the second day on anticipations that demand on gold as an investment weakened after prices could not resume their incline to hit another record high.
Yesterday, gold declined $2.40 or 0.20% to close at $1208.71 an ounce while the dollar lost strength six major currencies which are measured by the Dollar Index, inclined to close at 84.54 while recording a high of 84.70 and a low of 84.34.
Turning to commodity futures we see yesterday, S&P GSCI closed at 480.31 points recording a high of 486.82 points and a low of 486.82 points while RJ/CRB Commodity closed at 254.48 points.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, declined 0.3 metric tons to mark 1,318.91 metric tons. Gold was set in London on Monday at $1208.00 per ounce declining from $1208.50 per ounce during the AM fixing.
In addition, stocks in Asia climbed as a result of increased risk appetite in markets therefore demand on higher yielding assets increases which support overall stocks markets.
Turning to oil, we see that prices are rising for the first time in six days as the dollar is declining today which meant that demand on oil inclined, as oil as an investment becomes cheaper for investors especially since commodities are priced in dollars.
Currently, spot gold is trading at $1208.66 an ounce recording a high of $1209.62 an ounce and a low of $1202.97 an ounce.