Log in
E-mail
Password
Remember
Forgot password ?
Become a member for free
Sign up
Sign up
Settings
Settings
Dynamic quotes 
OFFON

4-Traders Homepage  >  Commodities  >  Platinum       

PLATINUM
Mes dernières consult.
Most popular
SummaryQuotesChartsNewsAnalysis 
News SummaryAll newsTweets

Gold Retains Haven Luster Despite Strong Data

share with twitter share with LinkedIn share with facebook
share via e-mail
0
02/15/2017 | 08:59pm CET
By Katherine Dunn 

Gold prices rose on Wednesday, as haven buying amid political uncertainty outweighed bullish signals on future rate increases from the U.S. Federal Reserve.

Gold for April delivery settled up 0.6% at $1,233.10 a troy ounce on the Comex division of the New York Mercantile Exchange, after trading as low as $1,217.50 earlier in the session. Wednesday's gains broke a four-session losing streak for the precious metal.

Prices fluctuated between gains and losses as data on Wednesday showed a mixed picture of economic strength. The consumer-price index, which measures inflation, had its strongest monthly gain in nearly four years, beating analyst expectations. Retail sales also came in stronger than expected, while industrial production numbers came up short.

While strong economic data helps boost confidence in markets and diminishes demand for safe-haven assets like gold, political uncertainty has given life to gold this year, analysts said.

Gold prices are a battle of "Janet vs. Donald," said Carsten Menke, a commodities analyst at Julius Baer.

On Tuesday, Fed Chairwoman Janet Yellen suggested the Fed could raise rates as soon as March, reviving expectations that had been dampened after a tumultuous start to the year. That gave a boost to the dollar and pushed down gold prices late Wednesday, as the metal doesn't bear interest and struggles to compete when rates rise.

Still, the majority of the market isn't betting on a March rate increase just yet. According to CME Group, 27% of traders see the central bank raising rates at the next policy meeting.

The WSJ Dollar Index also pulled back slightly on Wednesday, giving some support to gold. The metal is priced in the U.S. currency and becomes more expensive to other currency holders when the greenback rises.

Gold has seen a revival of haven interest following the inauguration of President Donald Trump. Markets have rallied partly on expectations about upcoming tax cuts and infrastructure spending, but details of the economic plan remain thin, analysts say.

"The gold market remains torn between the outlook for rising interest rates in the United States and economic uncertainties related to President Trump's policies," said Mr. Menke.

These contrasting directions have held investors' attention, leaving little room for other trends to drive the gold market, including physical demand, said David Govett, head of precious metals at Marex Spectron.

"This my friends is the modern parable of the bullion market," Mr. Govett said in a morning note. "It is all about the dollar, it is all about the 10-year yields, it is all about Donald Trump and it is all about the Fed."

Stephanie Yang contributed to this article.

Write to Katherine Dunn at [email protected]

Stocks mentioned in the article
ChangeLast1st jan.
GOLD -0.15% 1328.22 Delayed Quote.2.12%
US DOLLAR INDEX 0.16% 89.883 End-of-day quote.-2.15%
share with twitter share with LinkedIn share with facebook
share via e-mail
0
Latest news on PLATINUM
02/23PLATINUM ASSET MANAGEMENT : 'Australia's Warren Buffet' quits as head of fund ma..
RE
02/22DMS : Approvals for the Platinum and Optima radiology tables
AL
02/22ANGLO AMERICAN : Doubles Profit Amid Commodities Boom -- 3rd Update
DJ
02/22ANGLO AMERICAN : Almost Doubled Net Profit in 2017 -- Earnings Review
DJ
02/22ANGLO AMERICAN : Doubles Profit Amid Commodities Boom -- 2nd Update
DJ
02/22ANGLO AMERICAN : Doubles Profit Amid Commodities Boom -- Update
DJ
02/22Anglo American Net Profit Almost Doubles in 2017
DJ
02/20AngloGold Ashanti Reports Full-Year Loss -- Update
DJ
02/20RESOURCE GENERATION : Kodal Minerals Defines New Gold Anomaly at Nielle License ..
DJ
02/19World's Biggest Miners Emerge From Their Hole in a $200 Billion Comeback
DJ
More news
Chart PLATINUM
Duration : Period :
Platinum Technical Analysis Chart | 4-Traders
Technical analysis trends PLATINUM
Short TermMid-TermLong Term
TrendsNeutralBullishBullish