Prices of gold futures slid down on a US dollar modestly higher on Friday, but adapted to post its best week in 10 months such as publishing mixed US economic data continued to provide support the precious metal. And investors sought the safety there volatility in equity markets and foreign exchange after Switzerland unexpectedly dropped a cap on the franc.
On the Comex, New York, gold February futures delivery were down 0.57% to $1,257.60. Spot gold was down 0.2 percent at $1,259.27 an ounce.
The February contract ended Thursday’s session a four-month high of $1,266.11 after the Swiss National Bank’s move.
Volatility in global markets on Thursday as the Swiss central bank’s surprise move to abandon the franc’s cap against the euro, prompted investors to channel money towards gold, often seen as an alternative investment to riskier assets.
Gold has been benefiting from years for increased the central bank liquidity because of the 2008 financial crisis, but more monetary stimulus from the euro zone could give rise to a stronger US dollar, in turn, weighing on prices gold.
The demand for precious metals will recuperate on 2015 after two consecutive annual declines as intake in Asia advancing and the investors return to ETPs bullion, according to HSBC Securities (USA) Inc.
Assets in the SPDR Gold Trust, rose 1.4 percent to 717.15 metric tons on Jan. 15, the biggest jump since August 2011.
“The Swiss National Bank over the last 3 years euro-franc border, as gld rallied strongly yesterday and went on the upper level of the last 4 months. Today gold is pressure from the upper level. But in the last 11 months in gold this week’s biggest weekly gains. The price of gold has jumped about 3.5 percent this week. MCX gold moment in the domestic market get pressure, with the weakness of 0.2 per cent, gold is trading at Rs 27,430.” said 100 Mcx Tips.
Interest rates in India have begun to shrink. The rupee has strengthened further in the domestic market, What do you expect gold move?
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