Gold prices close to high in ten months

On Monday? 02/18/19 gold prices rose slightly, reaching a maximum since April 2018 amid a weakening dollar exchange rate due to investors' hopes that USA and China will be able to conclude an agreement, ending the long trade war.

On Monday, there will be no real trades on Comex in honor of President's Day.

The US dollar index, which shows the purchasing power of the dollar against a trade-weighted 6 major currencies basket, fell by 0.2% to 96.54, departing from the maximum for 2019, 97.23, which was recorded on Friday.

A depreciation of the dollar usually leads to an increase in the price of gold, which is regarded as an alternative asset. A cheaper dollar leads to a decrease in commodities calculated in dollars for other currencies holders.

Next week, market players will continue to follow the next stage of talks in Washington between the USA and China. Representatives of the two countries are in a hurry to conclude a trade agreement in order to prevent the increase in duties on Chinese goods, which is to occur on the 1st of March.

From March 1, US trade duties should increase from $ 10 to $ 25 billion on Chinese goods worth $ 200 billion, but Trump said he could extend the trade truce if he sees signs of progress in trade negotiations.

Investors will also be interested in the minutes of the last Fed meeting, which will be published on Wednesday. This protocol may provide additional information on US monetary policy in the coming months.

“Combined with supply problems this year, the market will face a palladium deficit ... a possible increase in demand in China compared to previous forecasts will contribute to a shortage of supply in the market,” ANZ analyst Daniel Haynes said.
Gold prices close to high in ten months Gold prices close to high in ten months Reviewed by Mark Schadenberg on February 19, 2019 Rating: 5
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