MET­ALS

The Star Early Edition - - MARKETS -

GOLD eased yes­ter­day, hurt by gains in the dol­lar in­dex and fresh out­flows from bul­lion-backed funds, with traders cau­tious ahead of a US hol­i­day and this week­end’s Swiss ref­er­en­dum on cen­tral bank bul­lion as­sets.

In London, gold fixed at $1 194.75 an ounce (R421 593 a kilo­gram) in the af­ter­noon, down $2.75 from Wed­nes­day’s sec­ond fix.

The dol­lar climbed against a bas­ket of cur­ren­cies, with the euro fall­ing against the US unit after data showed Ger­man in­fla­tion ap­peared to have soft­ened in Novem­ber. That has raised ex­pec­ta­tions that the Euro­pean Cen­tral Bank will re­sort to more ag­gres­sive eas­ing of mon­e­tary pol­icy.

How­ever, gold’s push lower has slack­ened in the ab­sence of fresh news.

“Every­body al­ready thinks the dol­lar is go­ing to con­tinue to strengthen next year… and that US in­ter­est rates are go­ing to rise… so to a cer­tain ex­tent that has al­ready been priced in,” Citi an­a­lyst David Wilson said. “Maybe the mar­ket is now look­ing for what the next driver is go­ing to be.” – Reuters

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