Gold Futures Gain after Four Day losing Streak

Gold futures finally recovered on Friday after four consecutive bearish sessions. Gold futures contract for February delivery gained 1.3 percent or $20.70 to $1,597.90 on Comex trading of the New York Mercantile Exchange.

Gold futures contract lost almost $140 in its last four bearish sessions however is now expected to cross $1,600 per ounce. Gold futures have declined 6.9 percent for the current week but now are expected to rally as US dollar is forecasted to be under pressure by most of analysts.

Commodity Strategists from Deutsche Bank commented, “Over the past three months, the correlation of gold to euro/dollar has risen to over 50%. This is likely to have occurred as U.S. dollar strength is no longer being accompanied by inflows into physically backed gold exchange-traded funds.”

The US dollar fell on Friday in reaction to better than expected Spanish debt auction which cleared the way for gold futures to recover. The dollar index DXY which tracks the greenback’s movement versus its six major rival currencies fell to 80.216 on Friday as compared to 80.292 on Thursday’s North American trading session.

Among other base metals silver futures contract for March delivery jumped 1.4 percent or $0.40 to settle at $29.67 while fell 8 percent for the week. Copper futures for the same month delivery surged 2 percent or $0.06 to $3.33 per pound on Friday. The respective contract declined 5.9 percent for the current week.

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