The price of gold is holding out around $1600 an ounce on Thursday whilst the US dollar makes gains against most major currencies including the euro, as seen by the ICE US Dollar Index, which passed through 81 in trading this afternoon.
Latest Gold Price
Gold for February delivery was adding losing $2s at $1,610.70 an ounce at the Comex division of the New York Mercantile Exchange. The gold price has traded as high as $1,626.80 and as low as $1,605.60 an ounce while the spot price was down $3, according to Kitco’s gold index.
Gold Buying Safe Haven?
Higher gold prices seem to still be held lower by a stronger US dollar, weaker euro and volatile stock market. Gold’s connection to the “risk on trade,” meaning that the metal has been rallying alongside stocks and the euro, can mean that gold is not being traded as a safe haven.
However, gold prices have also seen an upside as concern over Iran’s nuclear program fueled oil and gold price rises this week. Tensions between Iran and western countries escalated after the EU reached a preliminary agreement to ban imports of oil from Iran, prompting investors buy back into gold, which is seen by many as a safe haven asset.
Latest Dollar Index Rate
The ICE US Dollar Index, which tracks the US dollar against six major world currncies was trading at 81.135 14.20 GMT today, from the session open of 80.425.
See original here:
Gold price holds out around $1600 as US dollar shows more strength against major currencies
Leave a Reply
You must be logged in to post a comment.