Gold pulled down by stronger dollar but saved by political uncertainties

Gold pulled down

Gold prices slumped last Thursday when the dollar was bolstered, however the incoming election in France and economic problems surrounding Britain divorcing the European Union surpassed its declines.

U.S. gold futures were down by $8.70 to end at $1,245 for delivery in April. Gold futures were lower by $8.80 settling at $1,248. Spot gold edged down about 0.46 percent to close at $1,245 per ounce.

The British Prime Minister Theresa May officially setting the motion of proceeding the leave the European Union last Wednesday, along with the likelihood for the growth of the far right in the European elections this 2017, has served to build up gold’s image as a safe-haven venture, contradicting some of the outcomes of a firm U.S. currency.

Precious metals analyst at Natixis Bernard Dahdah perceives a support from the elections in France if the results are much better than predicted. French presidential candidate Emmanuel Macron is seen on top of the first round of the country’s referendum this April.

In currency, the U.S. dollar rose to its nine-day highs against its major opposing currencies last Thursday. A firm dollar makes the yellow metal more high priced for currency holders; it is also likely to overhang global demand. Federal Reserve’s President in Chicago Charles Evans was also responsible in the strengthening of the dollar, saying he was in line with almost of his associates in supporting to add more interest rate hikes this 2017.

Meanwhile in other metals; Platinum added 0.01 percent to $951.60 an ounce, Palladium rose 0.85 percent to $796.75, while the spot silver edged down by 0.13 percent to $18.18 when it touches a four-week high of $18.25 per ounce in previous session.

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