Gold futures log best closing price in nearly 3 months

New York (Jan 26)  Gold futures on Tuesday posted their best settlement since early November as jitters surrounding the oil market and China helped make the metal more attractive to investors.

February gold GCG6, +1.42%  rose $14.90, or 1.4%, to settle at $1,120.20 an ounce—its highest settlement price since Nov. 2, according to FactSet data.

US:GCG6 >>> $1,060$1,080$1,100$1,120$1,040$1,140

The climb came amid a volatile day on the financial markets, with oil CLH6, +0.36%  sliding below $30 a barrel before staging a rally. Oil’s early decline had helped feed a sharp stock selloff in China, where the Shanghai Composite Index SHCOMP, -6.42%  closed 6.4% lower.

Major Asian stock market indexes fell Tuesday, though European equities climbed and U.S. stock market indexes were trading higher as gold prices settled.

While the U.S. markets were performing well on Tuesday, “news that the global markets may be coming to a stall, combined with a weaker dollar and [Monday’s] drop in oil prices CLH6, +0.36% are helping push gold northward,” said Adam Koos, president of Libertas Wealth Management Group.

The ICE U.S. Dollar index DXY, -0.23% fell roughly 0.2%. A weaker dollar can support dollar-denominated commodities, such as gold, making them cheaper to other currency holders.

Looking ahead, “any continued anxiety about China’s growth will continue to put a bid into the yellow metal, as will any delays in rumored [Federal Reserve interest] rate hikes,” said Koos.

The Federal Reserve Open Market Committee will issue a statement on monetary policy at the conclusion of its two-day meeting on Wednesday, which could factor into gold’s outlook.

Source: MarketWatch