Gold Returns to $1200 as Dollar Strength Hurts Demand

Gold held below a five-week high as a strengthening dollar curbed demand for a store of value, with a U.S. policy maker saying the Federal Reserve is getting closer to replacing its vow to hold rates low for a considerable time.

Bullion for immediate delivery rose and fell at least 0.2 percent, and traded at $1,195.88 an ounce at 8:56 a.m. in Singapore from $1,198.28 yesterday, when prices fell 1.1 percent, according to Bloomberg generic pricing. The metal on Dec. 1 slumped to a three-week low of $1,142.88, before rallying to $1,221.43, the highest level since Oct. 30, as oil whipsawed.

The Bloomberg Dollar Spot Index was near the highest since 2009 before data this week that may show American employers added more than 200,000 jobs for a 10th month, boosting the case for tighter U.S. monetary policy as stimulus in Europe and Japan increases. Oil, trading below $70 a barrel today, has collapsed into a bear market, benefiting the U.S. economy, according to Fed Vice Chairman Stanley Fischer, who said that officials are closer to getting rid of the “considerable time” language.

Bloomberg

Content is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.