- IRDAI sets a target of 5 years for life insurance companies for greater penetration; proposes state-level committee
- Dalal Street Corner: Bank, FMCG stocks help Nifty clear crucial hurdle of 15,800; what should investors do on Tuesday?
- Despite windfall tax, brokerages remain bullish on oil & gas stocks; see up to 70% upside on ONGC, Oil India
- Rupee settles flat at 78.94 against US dollar
- Akasa Air showcases crew uniform; conducts proving flight test
Gold off six-and-a-half month peak on equity rebound, stronger dollar
Gold prices inched down from their highest level in over six months on Wednesday after a rebound in equity markets and a stronger dollar dented the precious metal`s appeal.
U.S. gold futures
"The equity markets turned around. Secondly, the dollar index got very strong; it is testing the 97 level again. Both of these factors are putting pressure on the price of gold," said Walter Pehowich, executive vice president of investment services at Dillon Gage Metals.
"I think gold will have a very good 2019. The dollar will continue to weaken. Even though it`s up today, it is just an aberration."
The U.S. benchmark S&P 500 stock index was trading lower but was above the day`s trough after dropping as much as 1 percent earlier in the session. [MKTS/GLOB]
The dollar index <.dxy> rose 0.7 percent against the euro and sterling on Wednesday. [USD/]
Meanwhile, euro zone manufacturing activity barely expanded at the end of 2018 in a broad-based slowdown, while China`s factory activity also contracted for the first time in 19 months in December.
Gold priced in euros
"There is some fading optimism for the euro zone area which is giving gold quite a good lift. It is a continuing trend of what we`ve seen in the latter part of last year," said Ross Norman, chief executive officer of Sharps Pixley.
Spot gold prices gained about 5 percent last month, the most since January 2017. Some investors expect the precious metal to pass the $1,300 psychological resistance level in the near-term.
Markets are now awaiting views from Federal Reserve Chairman Jerome Powell on the U.S. economic outlook and hints about interest rates in 2019 when he participates in a joint discussion on Friday with former Fed heads Janet Yellen and Ben Bernanke.
There are expectations that a three-year rate-hiking cycle in the United States has come to a close, which would be beneficial for non-yielding bullion.
Further pointers are expected this week from a closely watched survey on U.S. manufacturing, due on Thursday, followed by the December payrolls report on Friday.
Among other precious metals, palladium
(This article has not been edited by Zeebiz editorial team and is auto-generated from an agency feed.)
Get Latest Business News, Stock Market Updates and Videos; Check your tax outgo through Income Tax Calculator and save money through our Personal Finance coverage. Check Business Breaking News Live on Zee Business Twitter and Facebook. Subscribe on YouTube.