Gold Prices Up In Asia As Dollar Weakens Slightly To Support Physical Market

Investing.com – Gold prices rose in Asia on Wednesday with a slightly weaker dollar aiding sentiment.

for February delivery on the Comex division of the New York Mercantile Exchange rose 0.17% to $1,331.70 a troy ounce. The fell 0.03% to 89.49.

Overnight, gold prices fell to three-week lows as the dollar moved off lows shrugging off weaker economic data.

The dollar moved off session lows, pressuring gold prices despite a pair of bearish reports pointing to weakness in the economy.

The U.S. Labor Department’s latest Job Openings and Labor Turnover Survey (JOLTs) report, a measure of labor demand, showed job openings in December fell to about 5.81m, short of expectations for 5.96m.

The trade deficit — which measures the gap between what the United States imports and what it exports — widened to $53.1 billion in December, up $2.7 billion from November.

Dovish commentary from St. Louis Federal Reserve president James Bullard, meanwhile, did little to stem losses in the yellow metal. Bullard said that he favours low rates for an extended period, and warned that nominal wages were not a good predictor of inflation.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A fall in the dollar makes gold cheaper for holders of foreign currency and thus, increases demand.

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