Markets > Commodities

Gold rebounds as U.S. dollar weakens

Xinhua News,CHICAGO
2020-01-16 05:37

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CHICAGO, Jan. 15 (Xinhua) -- Gold futures on the COMEX division of the New York Mercantile Exchange rebounded on Wednesday after two days of losses.

The most active gold contract for February delivery gained 9.40 U.S. dollars, or 0.61 percent, to settle at 1,554.00 dollars per ounce.

The U.S. dollar index, a measure of the dollar against a basket of other major currencies, fell 0.19 percent to 97.19 shortly before the settlement of gold.

Gold and the dollar typically move in opposite directions. If the dollar index goes down, gold futures will rise as dollar-priced gold will become less expensive for investors holding other currencies.

Meanwhile, the Dow Jones Industrial Average and other stock benchmarks eased after rising to new highs. This prompted investors to diversify their funds into gold, a safe-haven asset.

As for other precious metals, March silver rose 24.6 cents, or 1.39 percent, to close at 17.988 dollars per ounce. The April platinum climbed 38.30 dollars, or 3.88 percent, to settle at 1,025.60 dollars per ounce, the first time since February 2018 for platinum to rebound above 1,000 dollars.

The United States and China signed on Wednesday the phase-one economic and trade agreement in Washington, which is expected to boost global economic growth in 2020.

"That can be read as bullish for the metals and the raw commodity sector as it suggests better global demand," wrote Jim Wyckoff, a senior analyst with Kitco.com.
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