Gold continues the gains amid thin trading on a weak dollar
Gold continues to gather the gains and heads higher versus the dollar today for the third consecutive session as the dollar trends lower. Silver and platinum were little changed while copper traded slightly lower.
Thin trading continues to be the dominant sentiment in the market, and trading likely to remain tight with UK markets still out for today, where the weaker dollar is the main stimulant for higher commodities and metals.
Despite the low volume and thin trading, the dollar still retreated against its major counterparts, where the dollar index which gauges greenback's strength against six major currencies declined towards 79.83 areas after recording the high of 80.27 and currently hovering around 79.87.
Gold today opened around $1383.55 recording so far the high of $1391.75 and the low of $1382.50 per ounce. Gold prices settled yesterday higher at $1383.45 per ounce.
The market remains controlled by the holiday thin trading and affected by the China surprise Christmas rate hike, where the sentiment over the outlook for recovery remains strong despite the sudden move and investors are still seeking gold haven over potential inflationary pressure, though the outlook for global inflation remains contained for now especially in the US.
We have only housing data from the US today, where the expected drop in house prices is in fact weighing on the dollar as the sector's recovery remains fragile and continues a main obstacle for the recovery.
As for other major metals Platinum today recorded the highest at $771.70 after opening at $770.20; palladium recorded the highest at $1743.70 after opening at $1740.20. As for silver the metal traded in a tight ranging inclining to record the highest at $29.35 slightly above opening levels of $29.24 per ounce.