Gold edges higher as dollar retreats from 14-year peak
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. —