Spot Price Gold: Increase on softer dollar upon global difficulties
- Spot gold gains 0.2 percent amounting to $1,297.95 an ounce during 0454 GMT.
- United States gold futures inclines at about 0.2 percent amounting to $1,297.80 an ounce.
On Friday, gold prices gain and recover from its sharp fall during the previous session. Meanwhile, the dollar declines as it attaches on concerns regarding the slowdown in the global economic growth pushed by demands on safe-haven bullion.
Moreover, the spot gold inclines at about 0.2 percent during 0454 GMT. Spot gold then amounts to $1,297.95 an ounce. A fair comeback upon a decline of about 1 percent during the previous day. Subsequently, the United States gold futures are up also by 0.2 percent, now amounting to $1,297.80 an ounce.
Elsewhere, the dollar dips at about 0.1 percent against major currencies. That of which is its biggest weekly incline since the early days of December last year.
Ajay Kedia, director at Kedia Commodities in Mumbai said, “The dollar has weakened, and gold as a safe-haven asset has seen support from Brexit uncertainty. As long as gold can hold the $1,290 level, it can reach the first level of $1,302 and then $1,310.” Kedia added, “The support we are now seeing at $1,290 shows that as long as there is lack of clarity on the (Brexit) deal, gold should be holding well.”
On Thursday, the British lawmakers vote to find a suspension in Brexit. That sets a frame for Prime Minister Theresa May on renewing efforts in getting approval for her divorce deal from the parliament by next week. According to analysts, it provides additional support to bullion. That increases the sign of a global economic slowdown.
Bank of Japan
Meanwhile, in March, the Bank of Japan cut assessment on overseas economies, that is to show sign of a slowdown. Moreover, it also revised its look at output & exports.
Furthermore, Brian Lan, managing director at dealer GoldSilver Central in Singapore gives his comment on the slowing economy. It suggests that one of the global biggest economies is already struggling. That of which offers gold a bit of support.
On Thursday, the United States release a data underscoring the growing pressure on the economy. The record of Americans filing applications of unemployment increases. It expected more to come last week as new home sales decline more than expected during January.
Kedia pointing a few uncertainties on US-China trade talk said “Data from the U.S. is not so good. So, weak US data and Brexit are holding gold prices up.” That of which still prevails in the market.
Subsequently, United States President Donald Trump and the Chinese President Xi Jinping nearing a point on sealing a trade deal which expects to happen at the end of March might not occur. According to Steven Mnuchin, Treasury Secretary, that was caused by the previous discussion that there is more work needed in US-China resolutions.