Gold edges higher

Kuwait Times - - BUSINESS -


Gold edged higher yesterday in thin pre-Christ­mas trade as the dol­lar re­treated from this week’s 14-year high, tempt­ing some buy­ers to take ad­van­tage of a near 10-month low in prices af­ter six straight weeks of de­cline. Gold has fallen more than $200 an ounce from its peak hit in the im­me­di­ate af­ter­math of Don­ald Trump’s US pres­i­den­tial elec­tion vic­tory on Nov. 8, as his win sparked a dol­lar rally and drove US Trea­sury yields higher.

It is down 14 per­cent this quar­ter, par­ing its gain for the year to 6.7 per­cent. Gold posted its big­gest quar­terly in­crease in 30 years be­tween Jan­uary and March. Spot gold was up 0.2 per­cent at $1,131.15 an ounce at 1255 GMT, off last week’s low of $1,122.35, while US gold fu­tures for Fe­bru­ary de­liv­ery were up $2.40 an ounce at $1,133.10.

“(Many) traders have closed their books. For them, the year has fin­ished,” LBBW an­a­lyst Thorsten Proet­tel said. “With no real po­lit­i­cal or eco­nomic events to shock mar­kets, and with Asian mar­kets see­ing dull de­mand, I would say not much will hap­pen un­til Jan­uary. We see gold hold­ing around $1,130.” Gold re­mains largely driven by cur­rency ef­fects, he added. “The most im­por­tant driv­ers for gold right now are the ex­change rate from the dol­lar to the euro, and real US in­ter­est rates.”

The dol­lar is just over half a per­cent off highs hit af­ter this month’s Fed­eral Re­serve pol­icy meet­ing, at which the bank sur­prised mar­kets by in­di­cat­ing in­ter­est rates could rise more quickly than ex­pected next year. — Reuters

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