Gold Prices Up in Asia As Trending Weaker Dollar Aids Sentiment

Investing.com – Gold prices gained in Asia on Wednesday with a weaker dolalr helping demand for the precious metal priced int he US currency.

for February delivery on the Comex division of the New York Mercantile Exchange rose 0.51% to $1,343.90 a troy ounce.

Overnight, gold prices traded roughly unchanged on Tuesday, shrugging off a rebound in the dollar from three-year lows as data showed traders remained bullish on the precious metal despite the uptick in demand for risker assets.

Gold prices remained close to four-month highs amid ongoing demand for the yellow metal as data showed traders 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.

Gold’s strong start to the year comes against continued risk-on sentiment as global equities extended their gains from 2017, rising to all-time highs. Some market participants, however, said they expected the yellow metal to range trade in 2018 amid expectations of additional Federal Reserve rate hikes this year.

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-bearing assets such as bonds.

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.