Gold rises as dollar falls and fears ease

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The price of the precious metal has been on the rise since January, as the market drew geopolitical fears and expectations of further US interest rate rises, as well as technical resistance at $ 1360-1365 an ounce, its highest level in the past three months. Spot gold rose 0.1 percent to $ 1,346.31 an ounce late in the US session. US gold futures for June delivery rose 0.2 percent to settle at $ 1350.70 an ounce. Troops from the United States, Britain and France launched air strikes on Syria on Saturday targeting three of its main chemical weapons facilities. Following the news, gold prices reached $ 1350.52, but found it difficult to maintain those gains amid expectations that the attacks would not be the beginning of a greater Western involvement in the conflict. The yellow metal also found support in Monday’s session of the dollar’s slide against the euro. “Syria, the trade tensions with China and the falling dollar index are good reasons for gold prices to continue to rise,” said market analyst at RJO Futures in Chicago. “It is disappointing that there has not been a bigger rally, but traders are turning to equity markets at These levels. ” Among other precious metals, spot silver rose 0.39 percent to $ 16.68 an ounce, while palladium rose 1.54 percent to $ 1002.22 an ounce. Platinum rose 0.15 percent to $ 928.90 an ounce. “Palladium is jumping because of the sanctions on Russia,” said Georgi Giro, managing director of the RBC-Welch fund. Prices rose 9.6 percent last week, the biggest weekly increase in more than a year, on concern that US sanctions could disrupt supply from Russia’s biggest metal producer, fueling a strong technical recovery for palladium following a 20 percent fall from its record high January.

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