With Dollar,Equities Down GOLD Price Is On A Rocket - Alldamoney

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With Dollar,Equities Down GOLD Price Is On A Rocket

With European stocks near four-month lows and the dollar in its lowest since early October Gold rallied to a one-month high on Investor anxiety as concern intensifies over the outcome of the U.S. election.Heading up above the $1,300 an ounce mark. Its Spot rate was up 1.28 percent at $1,304.22 an ounce at 12:02 pm EDT.Previously Bullion touched its highest since Oct. 4 at $1293.10 per ounce just as the U.S. gold futures rose 1.37 percent at $1,305.70 per ounce after earlier touching a one-month high of $1,294.10 on Wednesday.

Gold price rises on dollar weakness

After being caught off guard by Brexit earlier this year, political uncertainty in U.S. have traders fleeing into gold as a safe haven for their capital,” Colin Cieszynski, chief market strategist at CMC Markets said.

Markets were also awaiting direction on the timing of a U.S. interest rate hike from a two-day Federal Reserve policy meeting, which is due to conclude later in the day. While the U.S. Federal Reserve’s two-day meeting is not expected to deliver any change in policy, but could shed some light on the possibility of a rate increase at the end of the year. Such a hike could be negative for gold prices.
Interest rates are negatively correlated with Gold, and therefore increases the opportunity cost of holding non-yielding assets such as Gold.

Overall, gold’s investment appeal is been boosted by uncertainty surrounding the US election thereby contributing to the weakness of equities and the dollar.
Silver is another precious metal that increased in price seeing a 1 percent up to $18.51 per ounce. Earlier in the session, the metal hit a high of $18.55, its highest since Oct. 4.But Platinum went down 0.3 percent to $987.96 per ounce. Palladium  also was down 0.1 percent to $631.

New York's SPDR Gold Shares the world's largest gold-backed exchange-traded fund, reported an inflow of 2.7 tons in just over a week.

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