News Commodity Market News

Gold slips from 9-month high as US dollar strengthens

07-Feb-2019

COMEX gold trades weaker near $1310/oz Thursday amid some correction after recent rally to the highest level since April 2018.

Spot gold hit a 9-month high of 1326.33/oz last week as market reacted to Fed’s patient stance on interest rate hike and flexible stance on bond reduction plan.

The rally however ran out of steam amid gains in US dollar and equity market and ETF outflows. The US dollar index which hit a low of 95.162 post Fed decision last week has recovered more than 1% to trade near 96.4 levels today.

The US dollar has benefitted from better than expected US non-farm payrolls data. European currencies are under pressure amid disappointing economic data, Brexit uncertainty and positioning ahead of Bank of England decision today.

US and global equity markets are holding firm as market players await more clarity on US-China trade deal, Brexit and possibility of another government shutdown. As per reports, US Trade Representative Robert Lighthizer and Treasury Secretary Steven Mnuchin will lead a delegation to Beijing next week to lay the groundwork for a meeting between Trump and Xi later this month.

ETF outflows also show profit taking by investors. Gold holdings with SPDR ETF rose as high as 823.868 tonnes post Fed decision but have fallen by nearly 14 tonnes since then to stands at 809.76 tonnes.

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