Gold edges higher as dol­lar re­treats from 14-year peak

Kuwait Times - - BUSINESS -

Gold firmed yes­ter­day as a re­treat in the dol­lar from the pre­vi­ous ses­sion’s 14-year peak prompted some buy­ers to hunt bar­gains af­ter the metal’s sharp slide from its Novem­ber high. Gold had been hit hard by a surge in the dol­lar af­ter the Novem­ber US elec­tions, and a more hawk­ish tone from the Fed­eral Re­serve af­ter it hiked US in­ter­est rates for only the sec­ond time in a decade last month. Prices of the metal have fallen more than 11 per­cent since the elec­tions be­fore find­ing a floor at around $1,125 an ounce. Spot gold was up 0.3 per­cent at $1,134.71 an ounce at 1315 GMT, while US gold fu­tures for Fe­bru­ary de­liv­ery were up $3.10 an ounce at $1,136.70.

“With what we’re see­ing in the dol­lar at the mo­ment, there is no real driver to push gold lower,” ABN Amro an­a­lyst Ge­or­gette Boele said. “Be­cause of that, we’re see­ing it tak­ing a bit of a breather. We’ve had some big moves this year, and (buy­ers) don’t want to burn their fin­gers for the re­main­der of the year.” The dol­lar eased yes­ter­day from the 14-year high it hit the day be­fore, paus­ing in a post-U.S. elec­tions run higher that has rep­re­sented its en­tire gain for the year, while con­cerns over the bank­ing sec­tor pulled Euro­pean shares lower. —

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