Gold Prices In Asia As Dollar Weakens Slightly To compliment Physical Market
Gold prices rose in Asia on Wednesday with a slightly weaker dollar aiding sentiment.
Gold futures for February delivery within the Comex division of the Los angeles Mercantile Exchange rose 0.17% to $1,331.70 a troy ounce. The united states dollar index fell 0.03% to 89.49.
Overnight, gold prices fell to three-week lows because dollar moved off lows shrugging off weaker economic data.
The dollar moved off session lows, pressuring gold prices despite a couple 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 demand, showed job openings in December fell about 5.81m, next to expectations for five.96m.
The trade deficit — which measures the gap between exactly what the U . s . imports as well as what it exports — widened to $53.1 billion in December, up $2.7 billion from November.
Dovish commentary from St. Louis Fed president James Bullard, meanwhile, did little to stem losses inside rare metal. Bullard asserted that he favours significantly lower rates a great extended period, and warned that nominal wages weren’t a very good predictor of inflation.
Dollar-denominated assets for instance gold are sensitive to moves inside dollar – An autumn inside dollar makes gold cheaper for holders of currency exchange thus, increases demand.