MCX Gold: Gold Surges on Fed’s Bullish Report
MCX GOLD – On Friday, gold prices increased while the dollar moved a little. This was after Federal Reserve chairman Jerome Powell reported a bullish assessment of the US economy on Thursday.
“Our economy is currently performing very well overall, with strong job creation and gradually rising wages,’’ said Powell. He delivered this during his final scheduled public remarks ahead of the Fed’s next meeting on December 18 – 19.
“In fact, by many national-level measures, our labor market is very strong,” he added.
Based on Wall Street Journal’s report on Thursday, there is a possibility that the Fed could tighten monetary policy. However, it will be at a slower pace than expected this time.
The February delivery of Benchmark COMEX gold futures increased $1.60 at 1,245.20 per troy ounce. This was amid the support of flight to safety in maintaining the new-found support $1,240 intact of gold.
Elsewhere, the gold-backed exchange-traded funds (ETFs) listed inflows in the entire major regions globally in November. This was amid the stimulation of flight-to-safety buying by the volatile stock markets, according to the World Gold Council.
Meanwhile, the US Dollar Index, which measures the greenback’s strength against a basket of other currencies, added 0.02% to 96.787. The release of November U.S. non-farm payrolls, unemployment and wage data will be on Friday.
MCX Gold: Gold prices move little amid intensifying US-China trade worries
On Thursday, gold prices moved a little. This followed after the arrest of a top executive at China-based Huawei Technologies. The arrest news raised worries that it could reignite the US-China trade war.
As of 8:52 AM ET (13:52 GMT), the February delivery of Comex gold futures edged up 0.04% to $1,243.05 a troy ounce.
Huawei Chief Financial Officer Meng Wanzhou was arrested in Canada. The United States has requested this extradition and has been investigating as to whether she violated sanctions against Iran. Consequently, this put the market sentiment on edge.
There’s a possibility that this news could jeopardize the recent US-China trade truce.
Meanwhile, the US dollar was dragged down lower by the disappointing jobs data. The weakening dollar has helped advanced some demand for gold.
There was a more-than-expected increase in initial jobless claims. Meanwhile, the ADP payrolls number was lower than predicted.
The US Dollar Index, which measures the greenback’s strength against other major peers, was down 0.15% to 96.86.
On the Comex, other metals also went down. Silver futures fell 0.95% to $14.44 a troy ounce. There was a 1.26% to $791.80 decline in the Platinum futures. The Palladium futures dropped 1.37% to $1,167.90 an ounce. There was a 1.80% to $2.724 drop in Copper Futures.