MTECHTIPS;-Gold extends recovery from 10-month lows as U.S. dollar
MTECHTIPS;-Gold extends recovery from 10-month lows as U.S. dollar pulls back
MTECHTIPS- Gold prices edged up during European hours on Monday, extending its recovery from ten-month lows as the U.S. dollar pulled back from recent highs. Gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $4.55, or 0.4%, to $1,141.95 a troy ounce by 2:55 AM ET (07:55 GMT), after rising $7.60, or 0.67%, in the prior session. Prices of the yellow metal sank to $1,124.30 last Thursday, a level not seen since February 2. The dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.3% at 102.60 in early trade, slipping from last week’s 14-year high of 103.55, as a bout of profit taking kicked in ahead of the year-end holidays. Dollar weakness usually benefits gold, as it boosts the metal’s appeal as an alternative asset and makes dollar-priced commodities cheaper for holders of other currencies. Market analysts warned that the outlook for gold remains cloudy in the near-term, given expectations for higher U.S. interest rates in the months ahead. Gold futures lost $24.10, or 2.1%, last week, the sixth straight weekly decline, after the Federal Reserve hiked interest rates for the first time in a year and projected three more increases in 2017, up from the two projected in September. The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion, while boosting the dollar in which it is priced.