Gold futures were once again supported by a much weaker dollar as investors are currently anticipating the inflation data of United States this week. Figures are forecasted to indicate the pace of Fed’s monetary tightening.
U.S. gold futures edged up more than 0.1 percent to settle at $1,265.70 an ounce for its December delivery. Spot gold prices rose as high as 0.2 percent to finish at $1,259.43 an ounce. According to a technical analyst from Reuters, Wang Tao, spot gold may try to break under $1,255 an ounce which can result to a further decline at the $1,247 level.
The greenback traded close to the flat line as the market anticipates U.S. inflation data which is scheduled to be released this week. The index that tracks the value of the U.S. currency relative to its opposing currencies, the dollar index, inched down at 93.333. It is already given that the yellow metal will benefit from a weaker dollar because it would make it cheaper for non-U.S. holders. This will then increase the demand.
An analyst from ScotiaBank noted that the developing non-bearish chart may be a sign that several investors are buying gold as an insurance against the rising geopolitical uncertainties.
Looking in other metal prices; spot silver advance by 0.3 percent at $16.28 an ounce, it notched a low of $16.10 an ounce on the previous session. Palladium was higher lower by 0.2 percent at $887.30 an ounce. Platinum rose more than 0.4 percent at $966.90 per ounce. Ikemizu from ICBC said platinum is being helped by robust fundamentall