Gold ascend as the dollar declines

Gold traded higher as investors sought safety, along with the depreciation of the dollar against majors as seen on the US dollar index; which tracks the performance of the dollar against the pound, the yen, the euro and other three major currencies.

On a daily scale, gold for immediate delivery rose to trade at 1,391.29 an ounce, compared with the opening levels of 1,382.90 an ounce.

The dollar fell earlier to a low of 80.15 before accelerating to a high of 80.29 while currently settling to trade near 80.23.

Due to the inverse relationship between the metal and the greenback, gold for immediate delivery ascended, while gold futures rose by 0.53 percent or $7.40 to trade at 1,392.30 an ounce.

Major Market Movers

UK PPI input index for November showed that prices increased on a none seasonally adjusted basis by 0.9 percent, while on a year-on-year scale, the index rose by 9.0 percent from 8.2 percent. Both managed to exceed market expectations of 0.5% and 8.3% respectively.

Other Metals

Silver sales are forecasted to rise in the upcoming period, as investors seek protection from inflation and wealth from the volatility they face in FX-exchange markets.

Silver for immediate delivery rose on the daily scale to trade at 29.14 an ounce, touching a high of 29.26 an ounce and a low of 28.43, compared with the opening levels of 28.58.

Projections for silver's trading set the metal to range between $20.0 - $25.0 for the remainder of the year, as the short-term direction still faces pressures rather than enjoying a bullish trend.

Platinum for immediate delivery rose by $12.0 to trade at $1,686.00 an ounce, Palladium rose $14.0 to trade at $744.00 an ounce.