14.1 C
New York
Tuesday, May 17, 2022

Gold Hits 3-Month Highs, Coasting to 4-Week Rally

Gold Hits 3-Month Highs, Coasting to 4-Week Rally© Reuters. Gold ends up after a 3-month high and into a fourth week of gains.

Investing.com – Gold hit a three-month highs and notched a fourth-straight weekly gain on Friday for its best winning streak since last Christmas into January, as a global rout in equities helped the yellow metal retain its steady and slow climb.

Both spot and futures prices of bullion were also on track for their best monthly gains since August, despite intermittent rallies in the dollar in October amid the specter of higher U.S. interest rates. Investors typically view gold as a contrarian bet to the dollar.

U.S. for December settled at $1,235.80 a troy ounce, up 0.3% on the day and nearly 1% on the week, data from the COMEX division of the New York Mercantile Exchange showed.

The session peak, according to Investing.com data, was $1,246, which would mark a high since July 8.

Friday’s gains in gold were helped by weakness on and global equity markets, which were in for their longest losing streak in five years. A softer dollar also lured investors towards bullion.

While the , which measures the greenback against a basket of six currencies, was down 0.4% on the day, it was up nearly 1.5% month to date, more than the advance in gold. That made bullion’s rally in October even more remarkable, say long-time watchers of the inverse relationship between the two.

“The question now on my mind is ‘Is there starting to be a disconnect on the dollar index and the gold price?'” Walter Pehowich, executive president at Dillon Gage Metals in Addison, Texas, asked in his daily outlook on the yellow metal.

“Are the continued geopolitical risk-taking and significant stock market volatility taking a toll on global equities? Are the continued trade wars a factor? Also in a normal market higher interest rates should have put significant pressure on the price of gold and that hasn’t happened,” Pehowich added.

While geopolitical tensions such as Saudi Arabia’s crisis over the killing of journalist Jamal Khashoggi and the possibility of a Democratic House win in the U.S. midterm elections in November had reestablished bullion as a safe haven of choice, there was also support for gold from ramping yields and the likelihood of a continued selloff in equities, he said.

In other precious metals trading on COMEX, gained 0.7% to $14.71 a troy ounce by 2:36 PM ET (18:36 GMT).

rose 0.4% to $1,092.20 an ounce, while sister metal rose 0.5% to $836.00.

Among base metals, COMEX rose 0.2% to $2.744 a pound.

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.

Source: Investing.com

Related Articles

Stay Connected

11,299FansLike
12,893FollowersFollow
752FollowersFollow
- Advertisement -

Latest Articles

Popular Articles