Gold prices pushed higher Wednesday hitting an almost four-week high thanks to a weaker dollar and increased physical demand from major consumers China and India.
The spot price for the precious metal rose to its highest since Dec. 9 at $1,167.83 an ounce and was recently up 0.2% at $1,164.60 an ounce on the Comex division of the New York Mercantile Exchange, on track for its second straight day of gains. US gold futures climbed $3.80 to $1,165.90 an ounce.
A firmer dollar curbs demand for commodities priced in the greenback by making them more expensive for holders of other currencies.
Also, there is a little bit of safe haven momentum behind this buying with a certain amount of reality bite as we are only a couple of weeks away from U.S. President-Elect Donald Trump's inauguration and some concerns exist about his potential policies.
Trump has promised tax cuts, infrastructure spending and deregulation, and such changes could boost inflation and might set the stage for a confrontation between a president seeking to boost economic growth and the US Federal Reserve. People in China (the biggest consumer of the yellow metal) are nervous about their economy, with Trump as president and currency control mechanisms, and might be moving some of their annual foreign exchange quotas into gold.
Gold imports to Turkey rose to 36.7 tonnes in December, their highest monthly level in just over two years, data from the Istanbul bourse showed on Wednesday.
Silver was up 1 per cent at $16.42 an ounce, after hitting near three-week highs in the last session.
Platinum rose to four-week highs of $948.40 an ounce, extending a 4 per cent increase in the previous session.
Palladium gained 2.2 per cent to $724.47 an ounce, having climbed over 5 per cent on Tuesday, 3rd Jan’17
The spot price for the precious metal rose to its highest since Dec. 9 at $1,167.83 an ounce and was recently up 0.2% at $1,164.60 an ounce on the Comex division of the New York Mercantile Exchange, on track for its second straight day of gains. US gold futures climbed $3.80 to $1,165.90 an ounce.
A firmer dollar curbs demand for commodities priced in the greenback by making them more expensive for holders of other currencies.
Also, there is a little bit of safe haven momentum behind this buying with a certain amount of reality bite as we are only a couple of weeks away from U.S. President-Elect Donald Trump's inauguration and some concerns exist about his potential policies.
Trump has promised tax cuts, infrastructure spending and deregulation, and such changes could boost inflation and might set the stage for a confrontation between a president seeking to boost economic growth and the US Federal Reserve. People in China (the biggest consumer of the yellow metal) are nervous about their economy, with Trump as president and currency control mechanisms, and might be moving some of their annual foreign exchange quotas into gold.
Gold imports to Turkey rose to 36.7 tonnes in December, their highest monthly level in just over two years, data from the Istanbul bourse showed on Wednesday.
Silver was up 1 per cent at $16.42 an ounce, after hitting near three-week highs in the last session.
Platinum rose to four-week highs of $948.40 an ounce, extending a 4 per cent increase in the previous session.
Palladium gained 2.2 per cent to $724.47 an ounce, having climbed over 5 per cent on Tuesday, 3rd Jan’17
