The recent decline in oil strengthened the demand of gold

Gold clings to third straight loss

The price of gold was on the positive again on Thursday’s closing bell as the slump in oil prices made the demand for the yellow metal higher. The decline of the U.S. dollar and Treasury yields’ flat finish also supported prices.

Sam Laughlin, trader at MKS PAMP, noted that a weak U.S. dollar and a risk-off bias after the recent slump to crude oil saw gold turn higher amidst trading in Asia last Thursday. Oil futures were also on the red on the day after releasing its gains on the previous session. Traders seemed to be ready to assess fresh declines for the price of crude, along with concerns regarding the brimming supply worldwide.

OANDA’s market analyst Jeffrey Halley said the rampant price of oil spill in the futures market may have perceived traders owning gold and inciting risk aversion, adding that the initial influencer seems to be flattening the curve of U.S. Treasury yields. Yields were flattened as it was close to touch its 10-month low last Wednesday, the time when investors assessed the effect of the U.S. Federal Reserve policy regarding the nation’s economic health.

Looking at prices, U.S. gold futures added more than $3.60 to finish at $1,249.40 an ounce for its August delivery. Spot gold edged higher by 0.17 percent and trades at $1,248.18 an ounce. Spot rose as much as 0.3 percent in the previous session.

Meanwhile in other precious metals, platinum was 0.24 percent lower to $921.25 an ounce, palladium was also down by 0.24 percent to $884.30 an ounce, and spot silver advanced by 0.45 percent to $16.51 an ounce.

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