Gold below $1030 support levels, SPDR assets fall

Gold prices at COMEX fell for the 4th straight day hitting a 3-week low on Wednesday, ending below support levels of $1030 per ounce, as dollar resurged from its previous lows dampening gold’s demand as an alternate investment. In spite of a weak U.S. economic data on home sales the Dollar index; which gauge’s its performance against 6 major currencies rose from its 1 year lows. The greenback mainly benefited from the slide in the global stock markets.

The prices of gold at COMEX for December delivery settled at $1030.5, lower by $5 from its previous session. The prices hit an intraday low of $1026.39 since 9th October. The prices on Silver also mirrored its price values trailing gold & settled at $16.14, lower by 40 cents from its previous session.

World’s largest gold exchange-traded fund ‘SPDR’ stated in its website that it had shed its holdings on bullion- A second consecutive outflow from its quota, which weighed on the prices on the precious metal.

New Home Sales Data which was released by the Commerce Department posted a fall of 402,000 homes or 3.6% from its previous level (revised) figures of 417,000 homes. Despite such negative figures, from the US economic indicators, a sliding European markets help boost the dollar’s value among its investors. The quarter on quarter GDP released today will determine the buildup on dollar further, which seems positive after 4 consecutive negative figures.

Courtesy: JRG Wealth Management

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