Gold pushes into three-month high as dollar weakens

gold pushes

Gold prices gained and settled into a three month high as the U.S. dollar lost ground to chief rivals the day after a fuzzier-than-expected interest rate assessment from the Federal Reserve.

April gold gained $18.10 or 1.5% settling at $1,251.40, its best settlement since Nov. 10, 2016, according to FactSet data.

Earlier hints that the Fed would move to raise rates rapidly had led to a stronger dollar. That, in turn, usually provides a headwind to dollar-pegged assets including gold, making them less attractive to buyers using other monetary units.

In the notes from the Fed’s Jan. 31-Feb. 1 meeting, members indicated an interest in hiking rates “fairly soon,” but noted that the fiscal policy of President Donald Trump remained a wild card.

“The dollar weakness is one the primary reason that we are seeing this rally. Moreover, what traders are looking at is the probability of a rate hike in March and it is not great at all,” said Naeem Aslam, chief market analyst with Think Markets. “This sentiment is providing a lot of tailwind for gold.”

The exchange-traded fund SPDR Gold Trust advanced 1.1%. The iShares Silver ETF added 0.5%, while the VanEck Vectors Gold Miners climbed 0.9%.

In other metals trading on Comex, May silver rose 16 cents, or 0.9%, to settle at $18.18 an ounce. May copper fell 8 cents, or 3.2%settling at $2.66 an ounce. June palladium rose $4.40, or 0.6%, to settle at $774.60 an ounce. April platinum climbed $9.20, or 0.9%, to settle at $1,011.90 an ounce.

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