Gold price edges lower, strong dollar weighs

Gold was in negative territory on Monday December 12 in London, battling pressure from a strengthening dollar ahead of a crucial Federal Reserve meeting this week.

The spot gold price was recently quoted at $1,155.65/1,156.05 per oz, down $2.35 on the previous close. Trade has ranged from $1,151.50 to $1,160.30 so far.

Gold could fall below $1,100 next year, Commerzbank said in a research note, with the dollar likely to strengthen further over the coming months – the dollar index at 101.5 remains around recent highs.

The recent spate of strong US macroeconomic data and positive sentiment following Donald Trump’s unexpected win in the US presidential elections have prompted profit-taking in gold since November.

Investor focus will now shift to the US Federal Open Market Committee’s meeting on December 13-14. About 95% of market participants expect a rate increase at the meeting, according to the CME FedWatch tool.

“Strength in other markets and the dollar continue to weigh on the precious metals. Gold prices have set a fresh pullback low at $1,154.55 per oz; the rest are holding up better, with palladium prices consolidating in high ground,” Metal Bulletin analyst William Adams said.

“With the FOMC decision on Wednesday, we wait to see how much of the rate rise, assuming there is one, is already discounted in the gold price,” he added.

In the other precious metals, the spot silver price was unchanged at $16.845/16.870 per oz. Spot platinum climbed $8 to $915/920 per oz and spot palladium at $730/735 per oz was $5 higher.

(Editing by Mark Shaw)

The post Gold price edges lower, strong dollar weighs appeared first on The Bullion Desk.

from The Bullion Desk http://ift.tt/2hotN3B
via IFTTT