Gold prices scaled a one-month peak on
Friday, riding on a weaker U.S. dollar that has also put bullion
on track for a third straight weekly gain.
Spot gold was up 0.2% at $1,871.28 per ounce, as of
0214 GMT, its highest level since May 9. Gold prices have risen
about 1% so far this week.
U.S. gold futures also climbed 0.2% to $1,874.50.
The dollar edged lower, making greenback-priced
bullion more attractive for overseas buyers.
“We think prices have seen an important low around $1,828
this week, and with bullish momentum having returned, a move
towards $1,900 seems feasible,” City Index senior market analyst
Matt Simpson said.
Gold prices rose more than 1% on Thursday, supported by a
dip in the dollar and data showing U.S. private payrolls rose
less than expected last month.
Signs of an economic crisis can be supportive for gold
demand, as investors consider it a safe-haven asset.
“We also note that large speculators and managed funds
increased their net-long exposure to gold last week, for the
first week in six, which suggests there’s support at lower
levels,” Simpson added.
Meanwhile, the U.S. Federal Reserve is likely to continue
tightening monetary policy beyond the half-percentage point
interest rate hikes expected at each of its next two meetings,
two policymakers signaled on Thursday, with the only question
being how much.
Higher short-term U.S. interest rates increase the
opportunity cost of holding gold, which bears no interest.
SPDR Gold Trust , the world’s largest gold-backed
exchange-traded fund, said its holdings dipped 0.1% to 1,066.04
All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator
Read more from original source here…