EQUITY WORLD estimates that the price of gold for the next trade may rise if the dollar weakness continued and increased demand ahead of the Chinese Lunar New Year. The gold price is expected to move in the range of $ 1,218- $ 1.220 Resistance, but if the price drops will move in the range of $ 1,216- $ 1.214 Support.
Gold is near two-month highs associated haven demand after President Trump signed an order to withdraw the US from the Trans-Pacific Partnership, the dollar fell after Treasury Secretary nominee Steven Mnuchin raises concerns about its strength.
Bullion for immediate delivery fell 0.1% to $ 1,217.38 / oz at 09:02 am in Singapore after rising to $ 1,220.26, the highest since Nov. 22, according to Bloomberg. Bloomberg Dollar Spot Index fell 0.1%; berturun decline for 4 days.
Gold prices rose in late trading Tuesday morning (01/24), touching its highest in two months after the US dollar and US bond yields fall triggered the precautionary look at the economic policies of US President while Donald Trump made investors seek safer assets.
LLG Spot gold prices rose 0.56 percent at $ 1,216.33 per ounce. It earlier touched $ 1,219.43, the highest since Nov. 22.
EQUITY WORLD : US gold futures prices ended $ 10.70 higher at $ 1,215.60.
Trump at his inauguration promises to put “America First”, while the government said it would withdraw from or renegotiate important trade agreements, raising fears that protectionist White House could reduce global trade.
Trump policy uncertainty makes the dollar fell to 1.5-month low against a basket of currencies, while bond yields slipped from record highs recently.
A weaker dollar makes gold cheaper for holders of other currencies, while lower yields reduce the opportunity cost of holding gold are non-produce.
Gold finish last week rose 1 percent for the fourth consecutive week of gains and the longest consecutive weekly increase since July.
Underlining the bullish outlook, data from the Commodity Futures Trading Commission (CFTC), the US showed that speculators raised their net long position in COMEX gold contract for a second week in the week to January 17
And despite its protectionist measures, Trump plans for government spending, tax cuts and deregulation will tend to increase the dollar and US stocks if applicable.
Trump said on Monday that he believes that the government could cut US regulations governing companies with 75 percent or more.
If Trump policy provides faster economic growth, the US Federal Reserve may raise interest rates this year at a rate faster than investors expected, leading to bond yields higher which will reduce the demand for gold.
Among other precious metals, palladium fell 1.57 percent at $ 776.00, after earlier touching $ 795.60, the highest since May 2015.
Analysts say that investors have been too optimistic with palladium, which are used in the automotive industry for emission control catalytic converters, jumped 4.8 percent last week. Car sales this year in China and the US will fall short of the expectations of investors and suppress the increase.
Silver gained 0.93 percent to $ 17.19 while platinum rose 0.77 percent to $ 983.50.
News by EQUITY WORLD