Gold Futures Rally as the Greenback Weakens
Gold futures rallied on Wednesday and crossed the psychological barrier of $1,700 per ounce as the US dollar declined and US Fed announced to keep the interest rate at their lowest.
Managing director, Jeffery Wright from Global Hunter Securities commented, â€œIt looks like someone awoke to the fact that loose monetary policy will eventually impact the value of the dollar and allow gold to move higher.â€
Gold futures contract for February delivery jumped 2.1 percent or $35.60 to settle at $1,700 per ounce on the Comex division of the New York Mercantile Exchange. As compared to Tuesday, the gold futures contract was down by $13.80 in regular Comex session.
tWeaker dollar further exerted pressure on the commodities as The dollar index DXY which measures the US dollarâ€™s performance versus its major rival currencies fell to 79.660 on Wednesday as compared to 79.853 on Tuesdayâ€™s North American trading session.
Silver futures contract for March delivery gained 3.6 percent or $1.15 to settle at $33.12 per ounce while copper futures for the same month delivery advanced 0.6 percent or $0.022 to settle at $3.83 per pound.
Platinum futures for April delivery surged 1.8 percent or $27.20 to settle at $1,579.60 per ounce while palladium futures for March delivery soared 1.9 percent or $12.80 to $693.35 per ounce.
Rehan Khan has been involved in the financial sector for last 6 years. During that time he has been associated with many financial institutions, banks and brokerages. Rehan is also a graduate in finance and has been writing for last 2 years for various web publications.
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