Gold futures were strengthened by the U.S. dollar’s recent weakness

Gold slides down

The price of gold jumped on Wednesday’s session as it was somehow supported by the dollar’s recent weakness against its major peers.

Societe Generale’s global commodities strategist and head of research Mark Keenan said that almost all of the movement of the yellow metal can be tailored to the dollar’s performance and they have only witnessed minimal changes in ETF Holdings.

Keenan added that the people’s view regarding gold being the “safe haven demand” is slightly changing and the future of the yellow metal is currently down due to the lackness of demand in Asia.

Looking at prices, U.S. gold futures rose as high as 0.2 percent to settle at $1,340 per ounce and spot gold traded above the flat line by 0.1 percent to finish at $1,341 per ounce after notching its highest level since September 8 on the previous day at $1,344.44 per ounce.

In relation to the bullion’s recent strength, the U.S. dollar index was 0.1 percent lower at 90.373. On the previous trade, the index declined to its weakest level since December 2014 at 90.113. It is already given that gold prices will benefit from a sluggish dollar because it will make the non-yielding bullion cheaper for holders outside the United States. This can potentially strengthen the demand.

In other precious metals; spot silver was almost unmoved at $17.20 per ounce, palladium jumped about 0.3 percent at $1,002 per ounce after reaching its highest level since September 8 at $1,006.60 per ounce, and palladium was 0.8 percent up at $1,102 per ounce.

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