Equity world-Gold prices fell in late trading on Thursday morning (17/11), eroded by the strengthening US dollar rose to a 14-year high against a basket of currencies, extending a week-long rally fueled by a surge in Treasury yields after the election of Donald Trump as president.
LLG Spot gold prices fell 0.15 percent at $ 1,226.17 per ounce, while gold futures for December delivery rose 0.13 percent at $ 1,226.60 per ounce.
This precious metal has lost more than $ 100 per ounce from Wednesday’s high post-election behind the sharp rise in bond yields.
The major banks and investors have started debating the possibility of another step towards parity between the dollar and the euro, as the US currency benefited from a boost inflation expectations of the future government Trump.
Gold is also expected to feel the pressure from rising near the US interest rates, which are expected to rise for the second time in nearly a decade next month.
This will require a shock to the Federal Reserve not to raise US interest rates in December, one of the central bank policy makers, James Bullard, told reporters at a banking conference on Wednesday.
Investor interest for gold remained slack, with kepemiikan world’s largest gold-backed exchange trade funds, SPDR Gold Shares, said its holdings fell 1.5 tonnes on Tuesday to a 4.5-month low at 927.45 tonnes.
On the physical market is large, some Indian gold traders placing short-term import bulk orders amid fears that Prime Minister Narendra Modi may soon add restrictions on the purchase of foreign metals for the resignation of high denomination banknotes in the struggle against ‘black money’.
Silver was down 0.4 percent at $ 17.01 per ounce, and platinum was 0.7 percent lower at $ 928.75. Palladium fell 1 percent at $ 699.30.
Analyst Equity Research Center estimates that the price of gold at the next trade weak potential to move with the stronger US dollar. Prices are expected to move in the range of $ 1,224- $ 1.222 Support, whereas if the price rises will move in the range of $ 1,228- $ 1.230 Resistance.