Gold prices regain from loss

Business

NEW York: Gold prices has rebounded from five-and-a-half-month lows as the United States dollar shed some of the hefty gains made the previous week on bets that US President-elect Donald Trump’s plans for fiscal stimulus would prove inflationary.
Those assumptions have driven Treasury yields higher, denting interest in non-yielding bullion while boosting the United States currency.
But as the US dollar took a breather on Monday, after climbing for 10 straight sessions against a basket of major currencies, gold clawed back some lost ground.
Lower prices are also tempting some consumers of physical gold back to the market, dealers said.
Spot gold was up 0.3 per cent at US$1,212 an ounce by 2.59 pm EST (0659 Friday AEDT), while US gold futures for December delivery settled up 0.09 per cent at US$1,209.80.
“I think there’s probably a re-evaluation of the pro-risk mentality that we’ve seen over the last couple of weeks,” Mitsubishi analyst Jonathan Butler said.
“Very little has actually changed,”
“The bounce that we’re seeing (in gold) is probably on the back of the market moving on, to a degree.”
The euro rose from an 11-month low against a broadly weaker US dollar, with political developments seen easing uncertainty surrounding next year’s German and French elections.
Gold has fallen more than US$120 from its post-US election peak on November 9 as US Treasury yields posted their biggest two-week rise in more than five years and the US dollar shot higher.
– AAP

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