• The dollar is regaining momentum as investors take risks. Gold is losing its appeal

    25/11/2018

    Yesterday, Gold fell, as the dollar regained momentum, and risk appetite improved, which was reducing the appeal of the yellow metal.

    According to Reuters, spot gold fell 0.4 percent to $ 1221.92 an ounce by 1130 GMT.

    Gold fell 0.47 per cent in US delivery contracts in December to $ 1222.10 an ounce.

    Gold moved in a tight range of around $ 13 a week for reasons including holidays in the United States.

    The reading of growth in euro-zone activity was much weaker than expected this month as exports fell sharply, which were affected by a global economic slowdown and a US-led trade war.

    Market watchers are now looking forward to the G20 summit in Argentina at the end of this month, where Chinese President Xi Jinping is expected to hold talks with his US counterpart Donald Trump.

    Among other precious metals, silver fell 1.6 per cent to $ 14.25 an ounce, while platinum fell 0.3 percent to $ 841.20 an ounce.

    Palladium fell 0.95 percent to $ 1,142 an ounce. The metal is heading for the biggest weekly drop in percentage since the week ending July 20, down about 3 per cent so far.

    The euro fell about 0.5 per cent yesterday, after signs that economic growth could slow across the euro area.

     

    Growth in activities in the euro area slowed more rapidly than expected this month, according to a survey of the closely watched PMI.

    German private sector growth fell to a four-year low.

    The single currency fell more than 0.4 percent to 1.1402 after the survey was published, although it was high in early trading.

    The euro fell 0.2 percent against the Swiss Franc to 1.1326 francs.

    The dollar received support from the weakness of the single European currency, rising 0.3 percent against a basket of currencies to be stable at 96.706.

    By 0900 GMT, Sterling was down 0.3 percent at $ 1.2838, up 0.8 percent on Monday.

    The Japanese currency reached 112.96 yen to the dollar, slightly different from the previous close. They were traded in a tight range.

    The Australian dollar, often seen as a measure of global risk appetite, fell 0.2 per cent to trade at $ 0.7237.

    The euro fell about 0.5 per cent yesterday, after signs that economic growth could slow across the euro area.​

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