Gold prices rose on Thursday close in New York as the dollar fell on weak economic data from the United States, which bolstered expectations the Federal Reserve would stick to its dovish stance on monetary policy. Spot gold rose 0.5 percent to $1,312.17 per ounce as of 2:17 p.m. EST (1917 GMT).
US gold futures settled down 0.1 percent at $1,313.9. The dollar index fell to a session low, weighed down by a string of disappointing US data, with retail sales recording their biggest drop in nine years in December and weekly jobless claims registering an increase.
The data came in a bit weaker. "A lot of people think that gives the Fed more ammunition to not raise rates which is bullish for gold," said Michael Matousek, head trader at US Global Investors. "We are seeing a lot of traders coming in at these levels in anticipation for the next leg up in prices."
Gold prices have risen more than 12 percent since touching more than 1-1/2-year lows in mid-August, mostly on expectations of a pause in interest rate hikes. Lower interest rates reduce the opportunity cost of holding non-interest bearing gold and weigh on the dollar.
Meanwhile, investors continued to keep a close eye on news surrounding the US-China trade dispute amid growing optimism for a breakthrough after US President Donald Trump said on Wednesday the talks were "going along very well". With gold unable to record a significant break above its recent steady range, the world's largest gold-backed ETF, SPDR Gold Trust, had increased outflows, with holdings down more than 3 percent so far this month.
Gold is range-bound between $1,300 and $1,325 and weakness in the US dollar, and clarity on US-China trade talks would drive it above $1,325 and potentially toward $1,350, said ABN AMRO analyst Georgette Boele. Palladium rose 1 percent to $1,409 per ounce. Platinum was down 0.1 percent at $783 per ounce, while silver was unchanged at $15.56.
Comments
Comments are closed.