Dollar bounce sees gold dip after six-week high

A recovery for the US dollar has seen gold take a dip from the six week highs it enjoyed earlier in the week. The dollar bounced having fallen recently following less sparkling US economic data that impacted on inflation predictions. As a result the Federal Reserve (the Fed), led by chair Janet Yellen, delayed any interest rate rises. That move was predicted by markets which currently look to have priced in a rate rise in December.

Yesterday spot gold was at $1,260.86 an ounce by London close after peaking at $1,264.99, its highest since June 15. This morning the spot price sat at $1,259.31.

The Fed is looking to wind down its massive bond holdings built up via quantitative easing. “The rebound in the dollar is putting a little pressure on gold today,” Phillip Streible, senior commodities broker at Chicago’s RJO Futures told Reuters. “The (Fed’s) bond buy back policy will most likely go into effect, and we should see the long end of the (interest rate) curve start to rise and that could put a little bit of pressure on gold and a touch of a boost on the dollar index.”

Other precious metals also took an adjustment. Silver dipping by 0.4% from a one month high of $16.82 to $16.55 an ounce. Palladium gaining 0.7% to $871.45 after hitting $885.30, while platinum fell to $927.

Analysts earlier this week told Gold Made Simple that silver could enjoy a rally following a recent commitment of traders report which showed the number of net spec longs in silver at a notable low, historically worthy of reasonably large up moves.

In other news India is considering lowering the import tax on gold. Manoj Dwivedi, joint secretary at the trade ministry for the world’s second biggest gold consumer told reporters an improving current-account deficit warranted a re-evaluation: “There is a case for lowering import duty. It will be one of the strong recommendations on the budgetary side from the ministry.”

Link to this article: : http://www.goldmadesimplenews.com/gold/dollar-bounce-sees-gold-dip-after-six-week-high-13300/

Posted by on Jul 28 2017. Filed under Gold News. You can follow any responses to this entry through the RSS 2.0. You can skip to the end and leave a response. Pinging is currently not allowed.

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