ZEE Business
ZEE BUSINESS
हिंदी में पढ़ें  हिंदी में पढ़ें
Live TV
Live TV
  • Home
  • Personal Finance
    • PPF
    • Mutual Funds
    • Income tax
    • EPFO
    • Income Tax Calculator
    • Personal Loan Calculator
    • Car Loan Calculator
    • Home Loan Calculator
    • SIP calculator
    • SWP Calculator
    • MF Returns Calculator
    • Lumpsum Calculator
  • India
    • Companies
    • Property
    • Startups
    • Uidai
  • Economy
    • Aviation
  • Tech
    • Mobiles
    • Apps
  • Auto
    • Cars
    • Bikes
  • Markets
    • Commodities
    • Currency
  • Railways
  • World
    • Economy
    • Politics
    • Markets
  • videos
  • photos
  • MSME Summit
  • Trending News
    • Viral News
    • Travel
    • People
    • Entertainment
    • Sports
  • More ...
    • VIDEOS
    • PHOTOS
BREAKING NEWS
  • BPCL share price trades ex-dividend today, stock down over 2% – what should investors know
  • UPI's global expansion continues: Indian travellers can now use service in THIS country
  • Warning for iPhone users: Attackers can take control of your device - Apple issues statement
  • Manish Sisodia's residence in Delhi raided by CBI; Arvind Kejriwal reacts
  • Windfall profit tax on export of diesel, jet fuel hiked; slashed on domestic crude oil
Read in App
Business News » Markets News

Gold shines on weak dollar, Fed chief's dovish tone on rate hike

"The weaker dollar and a more dovish Fed are the two most alluring factors for gold," said Stephen Innes, APAC trading head at OANDA."There are concerns for the U.S. economy to slow down, perhaps towards the end of 2019 and into 2020, so the markets are pricing rate cuts."

  • Twitter
  • Facebook
  • Linkedin
  • whatapp
  • View in App
Gold shines on weak dollar, Fed chief's dovish tone on rate hike
"The (gold) market is holding back a little as they are concerned the equity market could rally significantly on trade war truce," Innes said. Reuters

On account of weaker dollar in the Forex market and Federal Reserve chief's announcement to remain patient over the demand for rate hike, the future Gold prices in the commodity market climbed on Friday as the dollar fell back on expectations the U.S. central bank may pause interest rates hikes if the U.S. economy slows this year, while investors awaited news on progress in the Sino-U.S. trade talks. Spot gold rose 0.4 percent to $1,290.84 per ounce as at 0310 GMT, heading for a fourth straight weekly gain. The yellow metal is up 0.4 percent so far this week. U.S. gold futures were up 0.3 percent at $1,290.8 per ounce. 

"The weaker dollar and a more dovish Fed are the two most alluring factors for gold," said Stephen Innes, APAC trading head at OANDA."There are concerns for the U.S. economy to slow down, perhaps towards the end of 2019 and into 2020, so the markets are pricing rate cuts."

The dollar slipped against other major currencies, after having rebounded from three-month lows on Thursday following Federal Reserve Chairman Jerome Powell`s comment which suggested the central bank is not done tightening monetary policy just yet.

A partial U.S. government shutdown extended into its 20th day and provided little comfort to the U.S. currency, after President Donald Trump threatened on Thursday to use emergency powers to bypass U.S. Congress to pay for a wall on the U.S.-Mexico border.

"The (gold) market is holding back a little as they are concerned the equity market could rally significantly on trade war truce," Innes said.

Asian equities inched up to one-month highs, but the rally`s momentum slowed partly as investors sought more clarity on whether the United States and China could make headways on their talks on trade as well as intellectual property rights. 

"Dilemma over the U.S.-Sino trade dispute is still raising eyebrows and needs clarity," said Sugandha Sachdeva, vice-president - metals, energy and currency research, Religare Broking Ltd.

"Once trade issues are resolved, the dollar is likely to remain suppressed, losing its appeal as a safe haven...Gold on the other hand would stand to benefit."  
 
Also aiding gold`s upward trend are concerns of weakening global growth, further emphasised by sombre data out of Switzerland and France on Thursday.

"Gold will likely approach the short term resistance of $1,310 per ounce, from where some profit-booking can be seen," said Religare Broking`S Sachdeva, adding that near term support can be seen at $1,275 per ounce.

Watch This Zee Business Twitter Video

#LIVE | अच्छे ग्लोबल संकेतों के बीच कैसे खुले बाज़ार देखिए #FirstTrade @AnilSinghviZEE के साथ। https://t.co/n0eON3kzfh

— Zee Business (@ZeeBusiness) 11 January 2019

Spot gold is expected to retest a resistance at $1,299 per ounce, with a good chance of breaking above this level and rising further to $1,311, according to Reuters technical analyst Wang Tao.

  Palladium 0.4 percent to $1,326.75 per ounce, and was up about 2 percent for the week. Silver climbed 0.6 percent to $15.65. However, it was poised to snap three sessions of weekly gains. Platinum was up 0.2 percent at $821.60 per ounce.

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.

TAGS:
Dollargold marketsCommodity Market
Written By: Reuters
Updated: Fri, Jan 11, 2019
10:53 am
Reuters
RELATED NEWS
S&P 500 dips, Treasury yields rise and dollar rallies following robust U.S. jobs report S&P 500 dips, Treasury yields rise and dollar rallies following robust U.S. jobs report
Experts believe Rupee faces risk of further decline to 82 against US dollar in near term - Here's why Experts believe Rupee faces risk of further decline to 82 against US dollar in near term - Here's why
Rupee vs Dollar: Why INR depreciating? Chief Economic Advisor has an explanation Rupee vs Dollar: Why INR depreciating? Chief Economic Advisor has an explanation
Indian Rupee likely to continue its depreciation rally, may fall up to 80.15/$ in 2-week, says expert – lists key negative triggers Indian Rupee likely to continue its depreciation rally, may fall up to 80.15/$ in 2-week, says expert – lists key negative triggers
Gold prices hover near 9-month low as dollar elevates Gold prices hover near 9-month low as dollar elevates

LATEST NEWS

Income Tax: How CBDT is streamlining the faceless assessment system for taxpayers - DETAILS

Manish Sisodia's residence in Delhi raided by CBI; Arvind Kejriwal reacts

Telecom Minister Ashwini Vaishnaw's message to telecom service provider for 5G launch - All you need to know

REET Answer Key 2022 level 1, 2 released at retbser2022.in: Steps to raise objection online, last date

Anil Singhvi's Strategy on August 19: Support zone on Nifty is 17,825-17,850, Bank Nifty is 39,250-39,450

Krishna Janmashtami 2022: Celebrate spirit of Lord Krishna’s birthday with these Bollywood songs - List

Krishna Janmashtami 2022: Quotes, Wishes, Images, Status, Video and Messages to share with your loved ones

Fixed Depsit Interest Rate: Check latest FD rates of HDFC Bank, SBI, Kotak Mahindra Bank, PNB, ICICI Bank, BoB, IOB, Ujjivan

UPI's global expansion continues: Indian travellers can now use service in THIS country

Operation Demat Daka Big Impact: 4 out of 5 victims of demat account hacking receive compensation; Anil Singhvi lauds them for their courage

  • India News
  • World News
  • Companies News
  • Market News
  • Personal Finance News
  • Technology News
  • Automobile News
  • Small Business News
  • Income Tax Calculator
  • Live TV
  • Videos
  • Photos
  • Author
  • Rss Feed
  • Advertise with us
  • Privacy Policy
  • Legal Disclaimer

Latest Trending Updates

  • EPFO
  • Budget 2020
  • Income Tax Return
  • Auto Expo 2020
  • Home Loan
  • Business News

Trending Topics

  • Income Tax
  • income Tax Calculator
  • 7th Pay Commission
  • Reserve Bank of India
  • GST
  • Latest Business News

Follow us on

zeebiz
zeebiz

Partner Sites

  • Zee News
  • Hindi News
  • Marathi News
  • Bengali News
  • Tamil News
  • Malayalam News
  • Gujarati News
  • Telugu News
  • Kannada News
  • DNA
  • WION
© 2022. India Dot Com Private Limited. All Rights Reserved.
LIVE TV