GOLD spiked from fresh 6-year lows against the Dollar but sank versus the Euro on Thursday as the single currency jumped despite extended QE and more negative interest rates from the European Central Bank.
Advertisement
LONDON, Dec 4 Gold edged lower on Friday as the dollar rebounded ahead of an eagerly awaited US non-farm payrolls report, but still looked set to snap a six-week losing streak.
The dollar rose 0.2 per cent to US$1.0615 (RM4.507) against the euro after reaching the strongest level since March.
“The ECB announcement disappointed expectations and the immediate reaction of the euro reflected that, aiding gold in dollar terms”, Mitsubishi Corp strategist Jonathan Butler said. In contrast, analysts expect the November payrolls report on Friday to show 200,000 jobs were added last month. The dollar was also pressured by comments from Chicago Fed President Charles Evans, who emphasized the need for the US central bank to spell out a gradual pace of rate hikes. They also ignored a weaker dollar, which retreated from a multi-month high on Wednesday after USA manufacturing contracted in November for the first time in three years.
A more upbeat services sector survey on Thursday, however, underlined the main risk of betting against sterling in the short-term – that the Bank of England will follow U.S. Federal Reserve’s lead and raise interest rates in the first half of next year.
Mumbai: Gold witnessed a smart rebound from a 3-1/2 month low at the domestic bullion market here today due to renewed buying interest from jewellery stockists and retailers in the face of firming overseas trend.
Gold fell to a five-year low Wednesday amid signs that the economy may be resilient enough to withstand a rate increase.
The dollar weakness likely required some bullion investors to unwind and cover their short positions in the precious metal, prompting the gains during the last two days. Assets in SPDR Gold Trust, the top gold-backed exchange-traded fund, are at their lowest since September 2008.
Fed Chair Janet Yellen, speaking before Congress’ Joint Economic Committee on Thursday, said the United States may be “close to the point at which we should be raising” rates.
Advertisement
Platinum for January delivery climbed $9.30 to $856.80 per ounce while the most actively traded palladium contract stood at $544.20, up $8.35.
