Gold prices extend decline for third day
Gold prices are falling for the third day as the dollar is rising which therefore is making gold as an investment less appealing to investors. Also black gold prices fell after China stated that the bullion will not be a main investment for its foreign exchange reserves.
Yesterday, gold declined $14.80 or 1.22% to close at $1192.47 an ounce while the dollar gained strength six major currencies which are measured by the Dollar Index, fell to close at 84.04 while recording a high of 84.81 and a low of 83.82.
Turning to commodity futures we see yesterday, S&P GSCI closed at 480.78 points recording a high of 491.02 points and a low of 479.12 points while RJ/CRB Commodity closed at 253.80 points posting a high of 257.91 and a low of 253.48.
SPDR gold trust, the largest exchange-traded fund backed by bullion in the world, declined to mark 1,316.48 metric tons. Gold was set in London on Tuesday at $1195.00 per ounce inclining from $1210.75 per ounce during the AM fixing.
In addition, stocks in Asia declined as a result of decreased risk appetite in markets therefore demand on higher yielding assets fell while the yen strengthened since it is a lower yielding asset.
Turning to oil, we see that prices are slipping as a result of falling stock markets which meant that an economic recovery is weakening, therefore hinting that demand on energy products will dampen.
Currently, spot gold is trading at $1190.04 an ounce recording a high of $1196.07 an ounce and a low of $1187.04 an ounce.