Gold Turns Sharply Higher As Dollar Hits 15 Month Low

Gold Turns Sharply Higher As Dollar Hits 15 Month Low

Gold Turns Sharply Higher As Dollar Hits 15 Month LowLos Angeles CA, August 28 (Tangible Investments) — by James O’Dell — Precious metals prices were higher across the board on Monday After Gold turns sharply higher as dollar hits 15 month low. Gold is up 1.22 percent to $1,306.50 an ounce after gaining $5.00 on Friday to end the week at $1,290.80.

Silver is up 1.70 percent to $17.34 an ounce after adding $0.10 on Friday to finish the week at $16.95. The Gold/Silver ratio fell to 75.71 as Silver outperformed Gold. Platinum is up 1.13 percent to $983.00 an ounce. Palladium is up 0.76 percent to $927.00 an ounce.

Gold broke above the psychological $1,300 an ounce level in early trading on Monday as the dollar hit 15-month lows.

Fed Chair Janet Yellen didn’t reference monetary policy at the Jackson Hole Symposium on Friday. Her reluctance to speak on policy led traders to expect a slowdown in interest rate hikes this year.

“According to the Fed fund futures, nothing has changed since Friday as far as rate-hike expectations are concerned, either. As before, they are pricing in only a 35 percent probability of another rate hike this year. The probability of a rate hike by the end of 2018 is only a good 70 percent,” said Commerzbank.

“Now that we know where both the Fed (dovish) and the ECB stands (tapering on the horizon), Gold traders are going to focus on the momentum, which would primarily be driven by the dollar weakness,” said Naeem Aslam, chief market analyst with ThinkMarkets.

NAFTA Could Be Finished

Meanwhile, also supporting Gold was the recent threat by President Trump to scrap the North American Free Trade Agreement (NAFTA).

Hussein Sayed, chief market strategist at FXTM says U.S. politics will play a big role in the price of Gold. “The debt ceiling and NAFTA [North American Free Trade Agreement] deal are amongst things to be watched closely,” said Sayed.

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