After the U.S. Federal Reserve meeting on Tuesday, gold shines after being in a continuous 10-month slump and ever since the dollar inched up last month. The small gain at the start of the week is a recovery from the dip gold experienced the past months, on the other hand, the dollar’s growth slows down and a decline as the week start.
The price of spot gold was at a steady $1,162 per ounce after a short jump of 0.4 percent on Monday. The spot gold’s price re-established a steady price after plummeting for the last 10-months, while dollar eased against yen after the FED meeting after coming from a surging 10-month run.
The precious metal at February delivered a 0.31 percent to $1,158.30 an ounce. While other metals like silver is trading in March with a decline of 0.29 percent to $16.918 an ounce, and copper is the one doing a great job with a continuous growth up to early December because of China’s constructions heavy flow and the promise of President-elect Trump of building and refurbishing some of the country’s bridges, building, and airports.
Gold’s Future Run and Other Influences on Its Growth
Some supports gold had on the market this Monday is the “outside market”. Recent reports unveiled that the crude oil future prices were boosted and hit a 16-month high of $54.51 overnight due to the decisions of Saudi Arabia to 500,000 barrels of oil production daily. While the U.S. Treasuries prices were lower on Monday, with the yield of benchmark10-year Treasury note climbing just above 2.5 percent.
According to the INTL FCStone analyst Edward Meir, the 3 percent growth, inflation picking up and an incoming administration that is not putting any interest on the job the FED is doing, we can all anticipate the Central Bank signaling a much rougher road ahead and a struggling future. And Meir also noted that an anticipated rise in rates and the continuous positive outcomes on the dollar, both factors can push the price of the fresh selloff in gold up to the $1,140 level as a seen target for the precious metal later this December.
Meanwhile, silver recently receives a bump of 0.2 percent at $17.10 an ounce after a very positive previous session. While platinum falls 0.6 percent to $925.70, the white metal has been struggling ever since last session’s 1.9 percent drop. Palladium, on the other hand, increased 0.1 percent higher at $722.90 having fallen more than one percent on Monday.
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