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Gold regains ground on softer dollar

Published 12/18/2015, 02:58 AM
Updated 12/18/2015, 02:58 AM
© Reuters.  Gold prices rise but upside seen limited

Investing.com - Gold prices regained some ground in European morning hours on Friday, helped by a softer U.S. dollar as markets digested the Federal Reserve's decision to raise interest rates for the first time in nearly a decade.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery were up 0.50% at $1,054.90.

The February contract ended Thursday's session 2.53% lower at $1,049.60 an ounce.

Futures were likely to find support at $1,046.20, the low of December 3 and a six-year low and resistance at $1,072.60, Thursday's high.

The dollar had strengthened broadly after the Fed raised interest rates by a quarter of a percentage point to between 0.25% and 0.50% at the conclusion of its two-day policy meeting on Wednesday. It was the first rate hike in the U.S. since 2006.

Commenting on the decision, Fed Chair Janet Yellen said that further rate hikes would be gradual and data dependent.

Adding to optimism over the strength of the U.S. economy, the Department of Labor said on Thursday that the number of individuals filing for initial jobless benefits in the week ending December 11 decreased by 11,000 to 271,000 from the previous week’s total of 282,000.

Analysts expected jobless claims to fall by 7,000 to 275,000 last week.

Elsewhere in metals trading, silver futures for March delivery held steady at $13.705 a troy ounce, while copper futures for March delivery rallied 1.46% to $2.073 a pound.

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