logo
 
Gold hit its highest in two and half months on Friday and remained on track for its biggest annual rise since 2010 as a wilting dollar, political tensions and receding concerns over the impact of US interest rate hikes fed into its rally.

The dollar, in which gold is priced, is sliding towards its worst year since 2003, damaged by tensions over North Korea, the Russian scandal surrounding US President Donald Trump's election campaign, and persistently low US inflation.

The dollar's drop to three-month lows versus a basket of currencies on Friday lifted gold to its highest since mid October at $1,303.90 an



ounce.
 
At 1430 GMT spot gold was at $1,302.72 an ounce, up 0.2 per cent, while US gold futures for February delivery were up $7.80 an ounce at $1,305.00.

“In the last couple of weeks, trade has been relatively thin, yields have been under pressure and the dollar as well, so gold has profited from that,” ABN Amro analyst Georgette Boele said. “If you look over the year, dollar weakness has been the main theme.”

Gold will be vulnerable next year to a rebound in the currency, as well as any gains in yields, she said. The opportunity cost of holding non-interest bearing bullion increases when yields rise elsewhere.

No Comments For This Post, Be first to write a Comment.
Leave a Comment
Name:
Email:
Comment:
Enter the code shown:


Can't read the image? click here to refresh

Todays Epaper

English Weekly

neerus indian ethnic wear
Latest Urdu News

Do you think Ruturaj Gaikwad would be a good captain for Chennai Super Kings?

Yes
No
Can't Say