Gold hits 1-month high as dollar weakens further
Gold prices rose to their highest level in one month on Thursday in light holiday trade and as the dollar fell to a four-week low.
Spot gold was up 0.2 percent at $1,289.10 an ounce at 0322 GMT, after earlier reaching its best since Nov. 29 at $1,289.92.
U.S. gold futures were up 0.1 percent at $1,292.20 an ounce.
The yellow metal has risen for a ninth straight day and is on track to register gains of over 1 percent this month and about 12 percent this year.
The dollar was on the defensive on Thursday, facing headwinds from a dip in U.S. 10-year bond yields, while commodity-linked currencies were bolstered by this week’s rally in metal and oil prices.
Gold prices have risen from a near five-month low of $1,235.92 touched earlier this month, as the dollar weakened after the U.S. Federal Reserve kept its outlook for three rate rises in 2018 unchanged and as investors remained divided over the impact of U.S. tax reform on economic growth.
“Furthermore, dollar index treading water…is keeping prices buoyant. These all have worked in favour of the beaten down asset and the current backdrop has actually turned bullish for the yellow metal,” Sachdeva said.
A weaker dollar makes greenback-denominated gold cheaper for holders in other currencies.
Among other precious metals, silver was 0.2 percent higher at $16.71 an ounce, after earlier marking its highest since late November at $16.73.
Oil prices near 2015 highs on tight market
Oil prices were stable on Thursday with trading activity drying up ahead of the New Year weekend.
Heading into 2018, traders said market conditions were relatively tight due to ongoing supply cuts led by the Middle East-dominated Organization of the Petroleum Exporting Countries (OPEC), as well as top producer Russia.
U.S. West Texas Intermediate (WTI) crude futures were at $59.69 a barrel at 0336 GMT, up 5 cents from their last settlement. WTI broke through $60 a barrel earlier this week, the first time since June 2015.
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