Gold rises as the dollar and U.S. bond yields decline
- Buz Investors Gold rises Gold is trading at $1147.80 per ounce at 10:40 GMT this morning, 0.46% higher from the New York close.
- Gold witnessed a high of $1151.30 per ounce and a low of $1142.30 per ounce during the session. Gold rose in the New York session yesterday, closing 0.21% higher at $1142.50 per ounce, amid broad weakness in the US dollar.
- Immediate downside, the first support level is seen at $1139.50 per ounce, while on the upside, the first resistance level is at $1153.70 per ounce.
Gold rises Gold prices rose to their highest in two weeks on Thursday as the dollar and U.S. bond yields declined following weaker than expected economic data.
Spot gold hit $1,150.26 an ounce, its highest since Dec. 14., and was up 1.1 percent at $1,155.54. US gold futures rose 1.3 percent to $1,156.60 an ounce
Gold fell more than 8 percent in November as U.S. Treasury yields rose after Donald Trump‘s telection led to speculation his commitment to infrastructure spending would spur growth.
The precious metal then hit a 10-month low on Dec. 15 as solid U.S. economic data gave the U.S. Federal Reserve the confidence to raise interest rates for the first time in a year.
The central bank also signaled that it expected three more increases next year, up from a previous projection of two. Gold is highly sensitive to rising interest rates, which lift the opportunity cost of holding non-yielding assets, while boosting the dollar, in which it is priced.
However, gold prices are still 8 percent higher than they were at the start of the year and were heading for the first annual increase after three years of declines.
Commodities ( Gold ) ( Silver ) ( Lithium )
Click here for reuse options!
Copyright 2016 Investors Buz