Gold futures prices gained some ground on Tuesday, as sliding oil prices but still remained vulnerable as the U.S. dollar was trading down against a basket of other major currencies.
Gold tumbled as the dollar gains close to the highest level on Monday, On the Comex New York, gold futures for February delivery were up 0.47% to $1,187.40. While Spot gold was up 0.4 percent at $1,187.60 an ounce.
Oil fell to their lowest level since 2009 in New York and London on speculation that crude stockpiles in the United States will remain the highest for the season in at least three decades.
“The price of oil is down and gold prices have fallen too, but have not come tumbling. I think that’s partly because the people are suspicious of economic and geopolitical situation.” bullion experts said.
Among currencies, the dollar index fell 0.2 percent, affected by the strength of the yen as investors sought the safety of conventional Japanese currency amid nerves year end over the coming economic risks.
By the year, gold has gone down 1.5 percent, hit by a dollar and expectations of a rise in interest rates in the United States.
In the meantime, the dollar remained supported after final data last week showed that Gross domestic product increased 5.0% in the third quarter, beating expectations for growth of 4.3% up to 3.9% the three months to June.
Getting quite support from a weaker rupee in gold and silver. After yesterday’s decline in gold today is light gains. The price is up about 0.5 per cent in the domestic market and is trading above the Rs 26,870.
For latest commodity market tips, MCX tips, news & updates with 100McxTips, for latest updates follow us on Twitter @100mcxtips and Like on Facebook. And to contact the reporter on this story email at firstname.lastname@example.org or Call: +91-761-4012307