Gold hits 1-month high on weakness in the dollar

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Gold hits 1-month high on weakness in the dollar
An employee arranges gold jewellery in a display at a stall in Bangalore.

london - Analysts expect this trend will continue into 2018

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Published: Thu 28 Dec 2017, 4:21 PM

Last updated: Thu 28 Dec 2017, 6:28 PM

Gold hit a one-month high on Thursday, rallying for a ninth straight session as a retreat in the dollar on the back of lower US bond yields drove gains in commodities priced in the currency.

The metal is also benefiting from technically driven momentum after closing above its 100-day moving average on Wednesday for the first time since late November, analysts said.

Spot gold was up 0.4 per cent at $1,291.74 an ounce at 1030 GMT, having earlier touched its highest since November 29 at $1,293.25 an ounce. US gold futures for February delivery were up $2.80 an ounce at $1,294.20.

"The weakness in the dollar is playing its part," Naeem Aslam, chief market analyst at ThinkMarkets, said. "We do think that this trend will continue into 2018. We expect the gold price to finish the year above $1,300 mark, and that would send a strong buy signal for traders."

The dollar came under pressure on Thursday from a recent dip in US 10-year bond yields, reaching its lowest in nearly four weeks against a basket of currencies.

That helped drive broad gains across commodities, with benchmark Brent crude oil futures near their highest since mid 2015, and copper at a four-year peak. - Reuters

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