Join +750K new investors every month who copy stock picks from billionaire's portfoliosSign Up Free

Gold Prices Near 4-Month Highs as Dollar Gives Up Gains

Published 01/17/2018, 01:07 PM
- – Gold prices remained close to four-month highs on Wednesday amid expectations the precious metal would likely ‘shrug off’ rate hike worries while dollar weakness limited downside.

Gold futures for February delivery on the Comex division of the New York Mercantile Exchange fell by $1.60, or 0.12%, to $1,335.50 a troy ounce.

“We expect gold will shrug off worries of fundamental downside amidst the unwind of accommodative central bank policy, and that the market premium over fair value will widen,” Deutsche Bank said.

The bank forecasts gold for 2018 at $1,283 an ounce, which takes into account market expectations of four Fed rate hikes and modest dollar weakness.

In a rising interest rate environment, investor appetite for gold weakens as the opportunity cost of holding the precious metal increases relative to other interest-nearing assets such as bonds.

The positive sentiment on the precious metal was supported by data showing traders continued to increased their bullish bets on gold for the fourth-straight week.

Speculative net long position in gold rose by 40,000 contracts to a net long 203,300 contracts, a six-week high, according to the most recent Commitment of Traders (COT) report.

In other precious metal trade, silver futures fell 0.20% to $17.16 a troy ounce, while platinum futures rose 0.59% to $1010.80.

Copper fell 0.98% to $3.19, while natural gas rose 4.06% to $3.26.

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.