News Commodity Market News

Gold tops $1330/oz for the first time since Sept.2017

12-Jan-2018

COMEX gold rose more than 0.5% and tested a high of $1331/oz, the highest level since Sept.2017.

Gold rallied to 4-month high on continuing weakness in US dollar. The US dollar index hit a low of 91.697 today, the lowest level since Sept.2017.

The US dollar weakened on disappointing economic data. US producer price fell 0.1% in December as against forecast of 0.2% growth. Weaker inflation may delay Fed's interest rate hike.

The euro edged up against the US dollar as minutes of European Central bank released yesterday showed that the central bank could revisit their communication stance in early 2018. This boosted expectations that they are preparing to reduce their vast monetary stimulus programme.

Gold's rally remain unfazed by firmness in US equity market which is at record high level. ETF outflows also show weaker investor interest. The sharp rally in global bond yields this week caused by China's stance on US treasury and Bank of Japan's reduction in bond purchases is also a negative development for gold.

Free Research for Trial



Please note that by submitting the above mentioned details, you are authorising us / Kotak Commodity Services Private Ltd (formerly known as Kotak Commodity Services ltd) to call you and send promotional communication even though you may be registered under DNC.

Top