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Gold recovers from 10 months’ lowest rate due to the weak USD

Gold prices rise during the European session on Monday, continuing to recover from 10 months’ lowest rate, as the USD collapsed after the recent record high levels.

19.Dec.16 8:33 AM
By Anna Tuzova


Gold recovers from 10 months’ lowest rate due to the weak USD
As at 07:55 GMT Gold to be supplied in February, traded at Comex of New York Commodity Exchange, has raised by $4,55, which is 0,4%, to $1141,95 per a troy ounce, after the growth by $7,60 (0,67%) during the preceding session.

Gold prices have fallen to $1124,30 last Thursday, which was the 2nd February rate.

The USD Index, which shows the dynamic of the American currency against the trade- weighted basket representing six main rivals, has decreased by 0,3% to 102,60 in the beginning of the trading,  shifting from 103,55 the last week, which was 14 years’ maximum, because of the investors fixing their income before the New Year’s Eve. 

Week US dollar generally supports gold, as it makes the metal more attractive as an alternative asset and lowers dollar prices for other currencies holders.

Analysts warn that projections for gold remain pessimistic in the short term, considering expectations of an increase in the US rate in the following months.

The gold futures have lost $24,10 (2,1%), as the US dollar strengthened its position after the Federal Reserve has raised interest rate and made clear the intentions to accelerate the pace of its’ incensement in 2017.

The precious metal is sensitive to interest-rate increases, as they deprive investors their returns on gold bullion investments, enhancing dollar, as it expresses the value of gold.

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