Gold prices prolonged the current rally to a seventh day on Tuesday, it was the longest bounce of increased since November, as the U.S. dollar declined during lasting doubt over Trump’s economic policies.
On Wednesday, gold prices increased in Asia with investor’s focus on the upcoming inaugural address by President-elect Donald Trump and Fed Chair Janet Yellen who is expected to talk about monetary policy goals.
Gold held near eight week peaks in the prior session on improbability over US president-elect Donald Trump’s economic ideas, after the greenback declined on his statements that the strong dollar was “killing us”.
Amid the rally of gold prices, the dollar index dropped to as low as 100.44, a level not perceived since December 8. It was previously at 100.60, down nearly 0.9%.
Delivery of gold for February on the Comex division of the NYMEX increased 0.11% to $1,214.15 a troy ounce with silver futures for March delivery increased 0.14% to $17.172 a troy ounce during morning hours in New York.
Copper futures inched up 0.08% to $2.261 a pound after average new house prices in China’s 70 major cities increased 12.4% in December from a year before, slowing a little from a 12.6% surge in November.
Spot gold was steady at $1,216 per ounce by 0110 GMT. Bullion hit an eight-week peak of $1,218.64 in the prior session. US gold futures increased 0.3% at $1,216.10 per ounce.
In the meantime, as of this writing platinum declined 0.55% to $977.60, while palladium after increasing 1.1% to $757.50 an ounce, suddenly plunged 0.9% to $746.42 an ounce.
The Fed Reserve had specified in December that about three rate increases were likely to happen soon in 2017, according to the reports.
However, traders remained skeptical. Instead, markets are predicting just two rate hikes all through the course of this year.
An interruption in increasing interest rates would be perceived as positive for gold, a non-interest-bearing asset, and negative for the greenback.
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