Gold futures are mixed and have hit their lowest levels since the beginning of the month. The yellow metal is relatively flat on a surging US dollar, propelled by the latest Japanese election results.
December gold futures rose $0.30, or 0.02%, to $1,280.80 per ounce at 16:11 GMT on Monday. Gold prices are trading at their lowest levels since October 6. This comes as the yellow metal recorded its worst weekly performance in October last week as it dipped 1.7%.
Silver, the sister commodity to gold, is in the red to kick off the trading week. November silver futures tumbled $0.04, or 0.25%, to $17.03 an ounce. The white metal also suffered a weekly loss of 1.9% last week.
The precious metals are being impacted by a rising US dollar as the greenback climbed 0.30%. The US dollar was given a boost following the weekend’s election results, which saw Japanese Prime Minister Shinzo Abe return to power with policies of loose monetary policy, more debt, and a weaker yen. A stronger dollar is bad for commodities like gold and silver because it makes it more expensive for foreign investors to purchase.
Gold and silver have been victims of a surging greenback this month. Last week, the buck posted its biggest
With the Federal Reserve expected to raise interest rates at December’s Federal Open Market Committee (FOMC) and domestic political turmoil subsiding, speculators have slashed their net long holdings in gold for the fifth consecutive week. Gold is generally sensitive to a
Moreover, President Donald Trump is expected to announce his nomination to lead the US central bank next month. Fed Governor Jerome Powell, economist John Taylor, and former Fed Governor Kevin Warsh are the leading candidates.
If you have any questions and comments on the commodities today, use the form below to reply.