Since last night was gold rising, received support from a weaker US dollar. However, only a limited rise in gold as investors are still anticipating the possibility of rising interest rates the Fed next week.
Spot gold traded in the range of 1.077.60 per troy ounce, up around 0:24 per cent after last night rose 0.4 percent as the US dollar slipped compared to other major currencies. The US dollar index was recorded at the level of 98.34, down 0.07 percent.
Bullion traders pessimistic on the continuing rally in gold prices influenced the increase in the Federal Funds Rate expectations for the first time since nearly a decade at the upcoming FOMC meeting December 15 to 16. Higher interest rates would make it difficult to compete gold with other assets that provide returns (interest). Gold has lost around 9 percent resale value due to expectations on the US interest rate hike.
The decline in commodity prices, especially crude oil, also weighed on gold futures movement. Black gold has dropped to the lowest level in seven years due to OPEC policies withstand higher oil production in order to protect market share. Weak oil prices could also trigger fears of deflation, a bearish factor for gold is often used as a hedge against inflation value.
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