Three And A Half Month High For Gold
Three and a half month high for gold has investors salivating. Spot gold went up 0.5 percent, coming in at $1,319.27 an ounce on Thursday. Gold Futures for February were able to settle at $1,321.60 an ounce.
Palladium also rose 1.2 percent, making it $1,095.24 an ounce this week. However, the precious metal did hit a record high for the year of $1,105.70 earlier in the week.
On the other hand, the dollar has been on a four-month low. The head of research at ETF Securities, James Butterfill believes that gold is looking to be overvalued.Gold is looking to be expensive as the rate hikes in March and June are looking to be near $1,230.
Market participants are beginning to doubt that the Fed will have as many hike rates as previously stated. That would make gold more attractive to investors as well.
Gold On Three And A Half Month High
Gold is extremely sensitive to rising U.S. interest rates due to the increase of holding non-yielding bullion.
Safe-haven purchases have also been beneficial for gold. With that being said, analysts see for the next six months gold trading between $1,200 and $1,300.
On Wednesday, gold was at it’s highest, coming in at $1,321.33 on Wednesday. However, it slowed down a bit after the Fed’s December policy meeting. The meeting bolstered any expectations for interest rates to increase in the US.
The price for Palladium as has gone up 56 percent since 2017. Investors were in fear that there would be a shortage of the precious metal coming into 2018.
Analysts say that palladium prices tend to have a lot of support. Though, the fear is still there due to a pullback from investors making little no profit from the metal.
Silver was able to rise up $17.18 an ounce after being on at eight-week high settling at $17.26 an ounce.
Platinum has gone up to $963 an ounce. Like gold, it was on a 3 and a half month high after reaching $964.80 an ounce.