Markets > Commodities

A weaker U.S. dollar makes gold futures higher

CHICAGO
2018-02-02 08:49

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Gold futures on the COMEX division of the New York Mercantile Exchange closed higher on Thursday as the U.S. dollars continued its downturn.

The most active gold contract for April delivery rose 4.8 dollars, or 0.36 percent, to close at 1347.90 dollars per ounce.

The U.S. Federal Reserve announced on Wednesday its decision to leave a short-term U.S. interest rate unchanged as expected, adding the inflation on a 12-month basis is expected to move up this year and to stabilize around its two percent objective.

However, the Fed's hint at possibility to hike rates at its next meeting in March failed to lift the weak dollar.

The U.S. dollar index, a gauge of the greenback against a basket of other major currencies, fell 0.35 percent to 88.79 as of 1813 GMT.

Gold and the dollar typically move in opposite directions, which means if the dollar goes down, gold futures will rise.

Investors now are looking at the U.S. non-farm payroll employment data, exptected to be released on Friday. The data reflect the strength of the U.S. economy, and make up the basis with other key indicators on which the Fed decides future rate hikes.

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