" /> Gold Touches 2-Week High as Dollar Weakens on Rate Speculation | Gold Silver Reports
Saturday, December 10th, 2016 11:54 PM
Breaking News

Home / Commodity News / Gold Touches 2-Week High as Dollar Weakens on Rate Speculation

Gold Touches 2-Week High as Dollar Weakens on Rate Speculation

Gold Touches 2-Week High as Dollar Weakens on Rate SpeculationGold Silver Reports — Gold Touches 2-Week High as Dollar Weakens on Rate Speculation — Gold advanced to the highest in two weeks as a weakening dollar attracted buyers in exchange-traded funds backed by the metal amid mounting speculation that U.S. interest-rate increases will be gradual.

The longest losing streak in three weeks, a day after a report showed a core U.S. inflation gauge rose less than estimated in September. That bolstered speculation the Federal Reserve won’t move aggressively in raising borrowing costs.

“We’ve seen a little reprieve from concerns about higher interest rates,” David Meger, the director of metals trading at High Ridge Futures in Chicago, said in a telephone interview. “We’re seeing a little bit of a rebound as the dollar now sells off.”

Gold futures for December delivery rose 0.6 percent to $1,270.50 an ounce at 10:36 a.m. on the Comex in New York, after reaching $1,273.50, the highest intraday since Oct. 5. Prices are set for a third straight gain, the longest winning streak since Sept. 22.

Investors boosted their holdings in ETFs backed by gold for a fifth straight session, extending gains to the highest in more than three years.

A Labor Department report on Tuesday showed that while the cost of living in the U.S. rose at the fastest pace in five months in September, the increase in prices excluding volatile food and fuel costs trailed estimates. The odds that interest rates will rise by December fell to 63 percent after the data Tuesday, down from 68 percent a week earlier. Lower rates boost the competitiveness of bullion against interest-bearing assets such as bonds.

The precious metal is set to rise to $1,347.40 an ounce by the time of the next London Bullion Market Association conference in October 2017, according to a survey of people attending this year’s gathering in Singapore, which ended on Tuesday. Silver will gain to $20.90, the survey showed.

Silver futures were little changed at $17.645 on the Comex, while platinum and palladium futures declined on the New York Mercantile Exchange. — Neal Bhai Reports

Gold Touches 2-Week High as Dollar Weakens on Rate Speculation

About Anil Yadav

Check Also

Crude Oil has a Credible Floor Now

Gold Silver Reports — Crude Oil has a Credible Floor Now — The Opec deal to cut production has …

We Make Ideas

READER DISCLAIMER

Our site is objectively in letter and spirit, based on pure Technical Analysis. All other content(s), viz., International News, Indian Business News, Investment Psychology, Cartoons, Caricatures, etc are all to give additional ambiance and make the reader more enlightening. As the markets are super dynamic by very nature, you are assumed to be exercising discretion and constraint as per your emotional, financial and other resources. This blog will never ever create rumors or have any intention for bad propaganda. We report rumors and hear-say but never create the same. This is for your information and assessment. For more information please read our Risk Disclaimer and Terms of Use.

Technically Yours,

Team GoldSilverReports.com, New Delhi, INDIA