Gold Prices Rise Towards Fresh 10 Month High as Dollar Slips

Gold prices edged higher on Monday rising towards their best level since April as the U.S. dollar weakened on hopes the U.S. and China would hammer out an agreement resolving their protracted trade war.
Gold Prices Rise Towards Fresh 10 Month High as Dollar Slips

Comex gold futures were up USD2.25, or around 0.2 percent, at USD1,329.95 a troy ounce by 8:40AM ET (13:40 GMT), not far from a 10-month high of USD1,331.10.

Meanwhile, spot gold was trading at USD1,326.91 per ounce, up USD5.50, or roughly 0.4 percent.

There will be no floor trading on the Comex on Monday because of Washingtons Birthday, more widely known as Presidents Day. All electronic transactions will be booked with Tuesdays trades for settlement.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, dipped 0.2 percent to 96.54, well off a 2019 high of 97.23 reached on Friday.


Dollar weakness usually benefits gold, as it boosts the metals appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies.

Markets will be keeping abreast of the next round of trade discussions between the U.S. and China in Washington this week, as the two sides race to reach a deal that would avert a tariff increase on Chinese goods by March 1.

U.S. tariffs on USD200 billion in imports from China are set to rise to 25 percent from 10 percent if no deal is reached by March 1, but U.S. President Donald Trump said that he may extend the deadline if the two sides were close a deal.

Investors will also focus on the release of the minutes from the Federal Reserves last meeting, due on Wednesday, for further insight into the outlook for monetary policy in the months ahead.

After the Fed hiked rates four times in 2018, investors now expect the U.S. central bank to halt its monetary tightening policy this year as risks to the U.S. economy mount.

Looser monetary policies are generally favorable to gold, which has benefited since the Fed paused its tightening path, said Nicholas Frappell, global general manager, ABC Bullion.

In other metals trading, silver futures tacked on 6.9 cents, or about 0.4 percent, to trade at USD15.81 a troy ounce.

Meanwhile, palladium futures jumped 1.6 percent to reach an all-time high of USD1,430.45 an ounce.

In combination with supply-side issues, the market is going to be in a sizeable deficit this year ... potential for better-than-expected demand from China will exacerbate that tightness, said ANZ analyst Daniel Hynes.


Reuters contributed to this report

Want to know more? Fill out this form and we will get in touch to discuss our strategies. No obligations, Ever!

An offshore commodities and forex trading firm, Red Maple Trading offers a combination of first-class trading advice and an award winning portfolio management team with an exemplary trading record.

Red Maple FX offers both non discretionary trading accounts and fully managed trading accounts. Call Toll Free + 1 888 673 2812

More Posts
  • Precious Metals Settle Lower on Dollar Strength and Hawkish Fed Comments
  • Golds support at 1485 to restrict further declines - MKS PAMP Group
  • Precious Metals Tumble on an Easing of Geopolitical Risks
  • Gold prices poised to challenge all-time high
  • Precious Metals Settle Mixed as a Slump is Stocks and the Dollar Boosts Gold
  • Gold price to hit 1600 on geopolitical turmoil
  • Gold Futures Market News and Commentary
  • U.S. yield curve: Invert steepen repeat
  • Gold Silver Prices Firmer as Traders Buy the Dips
  • Why You Should Be Investing in Commodities
  • Learn How To Trade Orange Juice
  • Are We Looking at a Dead Cat Bounce in Oil
  • AAA: Gas prices will continue to rise nationally as Nevadans see 4th highest in U.S.
  • Gasoline Diesel and Crude Oil Prices
  • Brent vs. WTI Crude Oil - What is the Difference
  • What is RBOB Gasoline
  • RBOB Gasoline Futures
  • RBOB Gasoline - Get in on the action
  • What is RBOB Gasoline
  • How to Invest in Crude Oil
  • Senior Accounts Manager Patrick Bates Strong on Long Gold
  • Offshore Investment
  • Gold Options Explained
  • Gold Prices Rise Towards Fresh 10 Month High as Dollar Slips
  • Gold Outlook 2019: How to Profit From Last Years Slide
  • Long Gold Is Goldman Sachs Favorite Commodity Play Right Now
  • How To Buy Gold Options
  • How can I buy oil as an investment
  • What is Offshore Investing
  • How the Oil and Gas Industry Works
  • The gold standard - All you need to know.
  • Liquefied Natural Gas - Game Changing Energy Trends For 2019
  • Natural Gas Production - Game Changing Energy Trends For 2019
  • Heating Oil Futures Option Trading primer
  • Deepwater Drilling - Game Changing Energy Trends For 2019
  • Energy Storage - Game Changing Energy Trends For 2019
  • Geopolitical Risk - Game Changing Energy Trends For 2019
  • Red Maple helps you ONLY buy stocks going up in price