Weaker dollar along with security concerns drove gold to its highs

Weaker Dollar

Gold was on a positive territory due to a much sluggish dollar as economic figures from the U.S. urged investors to reconsider the idea of an immediate interest rate hike by the Federal Reserve.

According to chart analysts, the bullion needs to settle above the 200-day moving average to gather strength for $1,263.80; it is currently around $1,259.

U.S. gold futures were higher by $4.40 at $1,258.40 per ounce. Spot gold gained 0.19 percent at $1,255.29 per ounce subsequently when it hits is highest at $1,260.09.

The national factory index of the U.S. Institute for Supply Management (ISM) was lower by 57.2 in March from last February’s 57.7, which is considered their highest since August 2004. Automakers announced that sales in the United States last month dropped by 1.6 percent.

According to a MarexSpectron analyst Guy Wolf, people worry less about inflation and it didn’t cross their mind that the Federal Reserve is the one responsible of the curve. He added that people are not so positive about President Trump being able to rapidly enact his campaign pledges regarding infrastructure and taxes.

The bombing in St. Petersburg metro last Monday that took the lives of 14 people and injured 50 has alerted security around the world. This urged investors to perceive gold as a safe-haven asset during uncertainties like this.

SPDR Gold Trust was higher by 0.53 percent to 836.77 tons on Monday from last Friday’s 832.32 tons.

Meanwhile in other metals, Palladium edged higher by 0.11 percent to $803.30, Platinum rose 0.37 percent to $955.05, and the spot silver gained 0.38 percent to $18.29 an ounce.

The U.S. Federal Reserve’s next policy conference is in May. Fed lifted interest rates last month.

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