Gold nears 9-month high as rally continues
NEW YORK (Jan 13) Gold prices touched their highest level in nearly nine months Friday as a weakening U.S. dollar continued to drive a sharp rally in the yellow metal.
Price action- Gold futures for February delivery GC00, 0.13% GCG23, 0.13% was marginally higher at $1,899 after trading above $1,900 an ounce on Comex, according to FactSet data. A day ago, the yellow metal settled at the highest level for a most-active contract since April.
- March silver SI00, -1.12% SIH23, -1.14% shed 29 cents, or 1.2%, to $23.60 per ounce.
- Palladium for March PAH23, -1.98% shed $30.90, or 1.7%, to $1,760 an ounce, while platinum PLJ23, -2.22% fell $17.80, or 1.7%, to $1,066 per ounce.
- March copper HG00, -1.10% HGH23, -1.10% declined by 5 cents, or 1%, to $4.15 per pound early Friday after finishing at the highest level for a most-active contract since June a day ago.
Gold was holding on to its gains from Thursday, when signs of cooling U.S. inflation in the December consumer-price index weighed on the dollar and helped to drive the yellow metal even higher.
The ICE U.S. Dollar Index DXY, a measure of the greenback’s strength against a basket of rivals, fell nearly 1% on Thursday in response to the CPI data. It was recouping some of those losses early Friday, however, and was up 0.2% to 102.46 in recent trade.
Gold has been in rally mode since early November, but its latest leg higher this year has grabbed the market’s attention as investors wonder whether the precious metal might return to its highs north of $2,000 per ounce seen in March of last year.
Craig Erlam, senior market analyst at OANDA, said the yellow metal’s rally has reached a “pivotal” point as the dollar has weakened.
“Gold is continuing its powerful start to the year with another small gain on Friday, breaching $1,900 in the process. It’s now right in the middle of the $1,880-$1,920 range that has been so pivotal in recent years,” Erlam said.
Marketwatch
