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Gold creeps up as dollar drops

Gold continues to find its feet after a rough bout following the election of Emmanuel Macron. The dollar has continued to fall on the back of a more bearish outlook on the US economy, with the dollar index down 0.4%, its lowest since early November. This looks to reduce the likelihood of further rate hikes by the Federal Reserve.

“Unless there is more stronger data, more than two rate hikes are not very likely (this year)” said Argonaut Securities analyst Helen Lau to news.com.au

The gold price continued to inch up, with spot gold up 0.4 percent at $1,234.81/oz at 0731 GMT, while US gold futures gained 0.4 percent to $1,234.90/oz, according to Reuters. The newswire saying that the likelihood of a June rate hike slipped to 74%, compared to 84% last week, citing CME Fedwatch.

Upwards pressures come from gold’s risk mitigation in the context of the North Korean missile test, the large-scale cyber-security scare and controversies surrounding US president Donald Trump’s dealings with Russian and handling of intelligence. As the gold price has broken the “Key resistance level” of $1,233, upward limits in the short term look far less daunting, according to Reuters technical analyst Wang Tao.

However, challenges to gold’s modest price rise may come from equity markets: In UK markets the FTSE has hit a record level as oil prices and commodities push up the index.

In other news three men from Australia have been hit with criminal penalties after stealing a gold nugget during a barbecue. More than a kilo of gold was taken from a remote mining site. Each of the men were charged £2,900

Photo Credit: James St. John. Edited with TVScanline

Link to this article: : http://www.goldmadesimplenews.com/gold/gold-creeps-up-as-dollar-drops-13148/

Posted by on May 16 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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