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Dow Jones record burdens gold price

Dow Jones

Gold has continues to move away from the seven-week high enjoyed at the beginning of the week. This morning gold was down to $1262.37 having been well above $1,270 a few days ago. The price had earlier touched $1,258.20 while gold futures for December delivery fell 0.9% to $1,266.30 per ounce.

The backdrop to the easing up of gold’s seven week run is the record breaking highs hit by the Dow Jones Index, whose Industrial Average broke 22,000 for the first time ever yesterday.

The index has risen by 11% this year and is on track for its sixth straight record close. The dollar meanwhile has inched away from its 15-month lows at the news. Although tensions over the Korean peninsular and uncertainty over White House cohesion are ongoing it is the situation in the markets that is influencing the gold price OCBC analyst Barnabas Gan told Reuters. “I think the global economic strength we’ve seen, especially from the U.S. numbers and the very strong equity prints last night, were much more dominant in influencing (gold) prices than (the ongoing) geopolitical concerns.”

Yesterday a report on US jobs data showed a less than expected number of hires but still returned figures showing an additional 178,000 jobs in July. Elsewhere gold demand in India was seen to surge by 32%, jumping to 167.4 tonnes during the second quarter of 2017 according to The Hindu, quoting a World Gold Council report. In Australia gold consumption was also up with the Perth mint reporting a 23% rise in sales in July.

Photo credit: 400tmax

 

Link to this article: : http://www.goldmadesimplenews.com/gold/dow-jones-record-burdens-gold-price-13323/

Posted by on Aug 3 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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