Gold prices break from record-high on rebounding dollar

Gold Prices

The yellow metal had its formal split up with its previously earned record-peak.

Gold prices have retreated on Wednesday trading and slipped from its previous day’s two-month high after the US dollar regained its poise after the government showed its inflation data ahead of the anticipated speech of Federal Reserve chair Janet Yellen.

One-day affair

Gold for February delivery gave up 80 cents, or just near 0.1%, settling at $1212.10 per ounce, parting from its highest level since November 17 recorded last Tuesday after the contract shot up 1.4%.

Spot gold had also a one-day affair with its peak as it shed 0.6% at $1 209.34 an ounce , after notching its highest close since mi-November in the previous session when Trump’s comment about the strength of dollar sent the currency crashing back to earth.

The greenback staged a comeback yesterday and renewed its strength, backed up by the latest data from the US Labor Department that showed a 0.3% increase in the consumer price index last month and a 2.1% rally in 12 months through December, the largest yearly gain in two years.

The US dollar index, which gauges the performance of the greenback against basket of major currencies, finished up 0.6% yesterday, marring investors to turn on the dollar-pegged commodity.

But the currency has tallied a weekly loss of 0.3% as it continued to undergo correction after staging a post-election rally, which sent the dollar rising and pushing gold prices in the negative territory in more than two months.


Leave a Reply

Your email address will not be published.