Gold held near a two-month low on Wednesday, under pressure from an advancing dollar- 7 Dec 2017

Commodity Intraday Tips
Gold held near a two-month low on Wednesday, under pressure from an advancing dollar ahead of a vote on the U.S. tax reform plan, but a potential government shutdown lent support to prices. Spot gold had inched 0.1 percent lower to $1,264.260 an ounce after it hit its weakest since Oct. 6 in the previous session. The dollar index firmed on uncertainty around a possible U.S. government shutdown if lawmakers fail to reach a budget accord before a Friday deadline. In November, gold traded in its narrowest range in 12 years. Meanwhile, the Republican-controlled U.S. House of Representatives voted on Monday to go to conference on tax legislation with the Senate, moving Congress another step closer to a final bill. Adding pressure on gold was market expectation that the U.S. Federal Reserve is almost certain to raise interest rates next week at its final monetary policy meeting for the year. Gold is highly sensitive to rising U.S. rates, as these lift the opportunity cost of holding non-yielding bullion while boosting the dollar, in which it is priced. Meanwhile, holdings in the world's largest gold-backed exchange-traded fund, SPDR Gold Trust, fell on Tuesday. But a November reading of global holdings of gold-backed ETFs showed they rose by 9.1 tonnes to 2,357 tonnes, with net inflows coming entirely from Europe as the dollar fell, the World Gold Council said. Among other precious metals, silver fell 0.4 percent to $16 an ounce, after hitting its lowest since mid-July in the previous session.

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