Dollar Declines To Bring Rally In Gold

Dollar declines brought rally in Gold prices as the same surged on COMEX at the trading session before the Christmas and the same is likely to bring some more upsurge in today’s session as well. Rising Crude prices also supported the gains. The dollar index, which tracks the performance of the greenback against a basket of other major currencies, edged down 0.1% at 77.70. Gold, as a dollar-denominated commodity, benefits from dollar weakness.

Most-active gold futures for February is at $815.10 an ounce on the COMEX. MCX Gold also modified itself by Rs 185 during the week to close the session trades at Rs 10359 per 10 grams.

Gold warehouse inventories were unchanged at 7.4 million troy ounces as of late Thursday, according to Nymex data. Silver stockpiles fell by 26,694 troy ounces to stand at 133.8 million troy ounces, while copper supplies edged down to 15,184 short tons, off 112 short tons.

US equities rallied ahead of the holidays, with both the Dow Jones Industrial Average and the Nasdaq up by around 1.5% in the New York afternoon. Prompting the gains were upbeat US economic data, which revealed continued resiliency with the American consumer. The greenback jumped to its highest level against the yen since November 7th at 114.16 while trading sideways versus the euro and sterling.

The US economic reports consisted of November consumption, core PCE, personal consumption, personal income and the University of Michigan consumer sentiment survey. The November adjusted consumption exceeded estimates for an increase to 0.6% from 0.2%, instead jumping to 1.1% while personal consumption for November edged up to a 0.5% reading from a flat reading in the previous month.