Today Gold Price: A Week Lows Drive Investors to Riskier Assets
On Tuesday, Gold price holds a week-long low touching the previous sessions. As dollar pressures, investors turn their desire towards riskier assets. They now tend to look at the improving and strong United States’s economic Data.
Gold Price Performance:
The gold price was spotted steady around $1,313.95 per ounce within 0349 GMT. Price of gold in the last session falls at the lowest starting on January 29 at $1,308.20. The United States’s gold futures dropped 0.1% amounting to $1,318.40 per ounce. Trading slows down also within Asia as the majority of the market doesn’t operate in celebration for the Lunar New Year holiday.
Jeffrey Halley, a senior market analyst at OANDA, said, “Gold fell overnight as bond yields ticked up and the dollar was also strong due to a risk-on environment.” Then he adds, “There is strong technical support and the Fed is mostly dovish, which should see gold supported around the $1,300-area. The focus would be more on the U.S. earnings season due to the absence of China for the whole week.”
The dollar then holds the previous gains against their peers during Tuesday. It mostly supports by the investor’s risky desires recovery.
Gold’s Spot Price Performance Since Last Year:
Since late April last year up to last week, gold price reach $1,326.30. It was after the United States Federal Reserve took interest rates on a steady amount. They said it could be patient towards higher hikes among sudden cloudy outlook with the U.S. economy. All because of the global growth and development concern including the U.S. China trade war.
The U.S. Economy
Nevertheless, strong U.S. jobs record which came out last Friday decreases concerns that the U.S. economy might immediate slowdown or decline. Loretta Mester, Cleveland Fed President, also noted on Monday that the central bank still could help further by raising interest rates whenever the economy performs well.
An analyst at TD Securities also said on research, “It seems to us that investors will need to get more signals before getting more aggressive in (acquiring long positions in gold), which won’t come until $1,360 or so.” Then the said analyst added, “Despite the fact that the Fed has gone dovish, they could still hike one more time.”
For the meantime, SPDR Gold Trust, the world’s largest gold-backed exchange-traded fund, holdings decline at 0.50% to 813.29 tonnes. Their holdings drop for the second time on a straight session. With other valuable metals, Silver rose 0.1% amounting to $15.88. Palladium also rose 0.2% amounting to $1,367 an ounce. Yer platinum drops 0.1% amounting to $817.00.