Weaker Gold Amid US Dollar Buying Interest Increase
- Trade Magnates Team
- Nov 24, 2017
- 1 min read
Trade Magnates - Gold prices declined on Friday amid German geopolitical uncertainty and profit taking by investors. The German uncertainty surrounding the future of its leader Chancellor Angela Merkel eased after Germany’s Social Democrats said it would consider talks with Angela Merkel’s Christian Democratic party to form a government. Gold future for December delivery fell to 1287.70 a troy ounce.
Geopolitical easing boosted US 10-Year to session highs, capping upside momentum in the precious metal. Gold is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.
The renewed buying interest around the buck keeps the downside pressure intact around the safe -haven metal in the second half of the week. The focus remains on Fed probable rate hike in December.