Breaking News
0

Gold Retreats on Dollar Resilience Despite 2019 Rate Hike Doubts

CommoditiesDec 11, 2018 02:32PM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
 

Investing.com - The dollar's relative stability, despite expectations of a friendlier 2019 Fed for risk assets, isn't helping gold bugs.

Futures settled down for a second day in a row Tuesday after climbing earlier in the session on Brexit anxieties and speculation that the Federal Reserve will hold on raising rates after a widely expected hike next week, which would be its fourth for this year.

Benchmark COMEX gold futures for February settled down $2.20 at $1,247.20 per troy ounce. Earlier in the session, it reached $1,255, closing in on Monday's five-month high $1,256.60, before being overwhelmed by the dollar's surge in late trading.

The dollar lost some its upward momentum over the past two weeks on dovish signals from the Fed, although it has picked up pace again this week.

By 2:10 PM ET (19:10 GMT), the U.S dollar index, a contrarian trade to bullion, was up 0.2% at 97.395.

"We actually think that the days of the dollar’s reign as King of FX could be numbered," Fawad Razqzada, technical analyst for the currency at forex.com, wrote in a commentary on Tuesday.

"However, at this stage, we are merely on the lookout for bearish fundamentals and indeed price patterns to potentially emerge on the currency. So far, we haven’t observed any significant reversal signals on the greenback."

Still, some were betting on a gold rally if the upcoming Dec. 18-19 Fed meeting reinforced market expectations of a hold on further rate hikes.

"Should the the Fed signal a cautious approach for 2019 hikes, that could be the catalyst needed to see gold break out toward $1,300/oz," TD Securities said in a note this week.

Gold's rise earlier in the day was helped by Britain's continuing crisis over its exit plans from the EU and signs that Prime Minister Theresa May might not survive her term in office.

Among other precious metals on COMEX, silver rose 0.2% to $14.63 per ounce.

Palladium jumped 1.2% to $1,172.80 per ounce, while sister metal platinum rose 0.4% to $784.80.

In base metals, COMEX copper gained 1.6% to $2.76 per pound.

Gold Retreats on Dollar Resilience Despite 2019 Rate Hike Doubts
 

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at Investing.com’s discretion.

Write your thoughts here
 
Are you sure you want to delete this chart?
 
Post
Post also to:
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
 
Are you sure you want to delete this chart?
 
Post
 
Replace the attached chart with a new chart ?
1000
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's Investing.com's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
or
Sign up with Email