The strong dollar remains to drag the gold prices down and today, the commodity’s price dips on a worrisome one week low. One of the reasons why the dollar bullishly run today is the fresh highs from the U.S. Treasury yields from the growing anticipation of an interest rate hike next month.
On the brighter side, the massive gold price bleeding was apprehended by the growing concerns and doubts that revolve around the United States’ growth outlook. On the other hand, a handful of analysts are pointing that the prices of gold will unlikely to go up because of numerous circumstances, the most pressing is the central bank's debacle.
The gold prices, as of writing, were down several percentages on the growing dollar; the spot gold took a massive beating, decreasing by 0.4% at $1,272.79 per ounce. The delivery futures for December were also slumping, tallying a loss of about 0.5% to $1,272.70. The gold futures were massively dipping on the market, hitting a one week low $1,270.56 before easing to its current levels.
On the brighter side, the fear of low economic data and the ongoing debacle regarding the future of the U.S. tax reform has been keeping the commodity afloat and preventing severe losses. The unexplainable risk the dollar carries continues to push investors to look at gold as the perfect safe haven in the event of the whole dollar crashing in the next couple of months and even weeks.
Along the lines of precious metals, the following also took a beating on the dollar-dominated marker; silver, platinum, and palladium. The silver fell by a massive 0.7% to $16.93 per ounce, while the platinum was also dipping by 0.3% at $929.40, and lastly, the palladium managed to recuperate some major dips from last week and managed to ease today but still tallying losses of 0.4% at $985.22 an ounce.
Gold’s Possible Future
According to an asset strategy at Wells Fargo Investment Institute, “A more normal global monetary system is a net-negative for gold,” and “Gold, like many other commodities, typically performs best with loose monetary policies, including extra low real interest rates. The more ‘normal’, or less accommodative, global monetary systems become, the harder it will be for gold to rally.”
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