Commodity Watch Indonesia: Gold Remains Strong on Weak US Dollar
The price of gold remains above the level of USD $1,250 per troy ounce amid the negative sentiments that have depressed the US dollar as the market is in wait & see mode ahead of the Federal Reserve meeting on July 25-26, 2017.
On Monday (24/07) at 11:12 am local Jakarta time, spot gold prices had fallen 0.03 percent to USD $1,254.60 per troy ounce. Meanwhile, December Comex Gold futures slipped 0.05 percent to USD $1,260.40 per troy ounce.
The US dollar index had appreciated 0.04 percent by 11:00 am local Jakarta time. However, last Friday (21/07), the US dollar index dipped 0.48 percent, its lowest level since June 2016. This US dollar weakness is supporting gold prices.
Guotai Junan Futures mentioned in a research note that gold prices are driven by the weaker US dollar amid the heating up of US politics and the controversy surrounding President Donald Trump (including the investigation into Russian influence in the latest US election). In the near term, the market will remained focused on the meeting of the Federal Reserve on July 25-26, 2017.
The most-awaited market information is the Federal Reserve's plan to address the USD $4.5 trillion balance sheet as it has started to tighten its policy. Investors are also looking for any clues about more interest rate hikes.
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