Gold Prices Hit 4-Month Highs as Dollar Languishes at 4-Month Lows

Gold Prices Hit 4-Month Highs as Dollar Languishes at 4-Month Lows

Investing.com  | Jan 12, 2018 17:39

Gold Prices Hit 4-Month Highs as Dollar Languishes at 4-Month Lows

Investing.com – Gold prices rose to four month highs shrugging off renewed signs of US inflationary pressure as dollar fell to lows amid euro and sterling pressure.

Gold futures for February delivery on the Comex division of the New York Mercantile Exchange rose by $11.20, or 0.85%, to $1,333.70 a troy ounce.

The euro and sterling rallied against the dollar, supporting dollar-denominated gold, as traders cheered easing political uncertainty in both the UK and Eurozone.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A falling dollar makes gold cheaper for holders of foreign currency and thus, increases demand.

Chancellor Angela Merkel struck a deal with the Social Democrat Party (SPD) on Friday, paving the way for government coalition talks. While in the UK reports that several EU member countries are open to the idea of a softer brexit lessened investor worries of the EU adopting a tough stance on trade discussion with Britain.

Gold prices were on track extend their four-week rally despite signs of renewed inflation which may strengthened the Federal Reserve’s case for tightening monetary policy.

The Labor Department said on Friday its core Consumer Price index rose 0.3% in December, edging up 0.2% in November. The uptick in consumer prices in year-on-year through December rose to 2.1%.

Wells Fargo said the upbeat CPI data should help to allay some FOMC members' fears that “inflation is stuck at undesirably low levels.”

In other precious metal trade, silver futures rose 0.97% to $17.13 a troy ounce, while platinum futures rose 0.57% to $996.40.

Copper fell 0.43% to $3.22, while natural gas rose 4.25% to $3.22 following storage data Thursday showing natural gas stockpiles fell more than expected.

Related News

Latest comments

Add a Comment
Please wait a minute before you try to comment again.
Discussion
Write a reply...
Please wait a minute before you try to comment again.

Fusion Media will not accept any liability for loss or damage as a result of reliance on the information contained within this website including data, quotes, charts and buy/sell signals. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible. Currency trading on margin involves high risk, and is not suitable for all investors. Trading or investing in cryptocurrencies carries with it potential risks. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Cryptocurrencies are not suitable for all investors. Before deciding to trade foreign exchange or any other financial instrument or cryptocurrencies you should carefully consider your investment objectives, level of experience, and risk appetite.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures), Forex and cryptocurrencies prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn’t bear any responsibility for any trading losses you might incur as a result of using this data.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Australia) English (South Africa) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 中文 香港 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt
Sign out
Are you sure you want to sign out?
NoYes
CancelYes
Saving Changes

+