Gold Price Steady As Political Concerns Offset Rate Hike Fears – Market Outlook Positive
Mar, 16th 10:40
Gold prices held firm on Friday as tensions between the United Kingdom and Russia and renewed US political concerns offset worries about a possible US rate hike next week.
Gold was unchanged at $1,315.50 per ounce at 0200 GMT. Spot gold has fallen 0.6 percent so far this week.
Gold prices fell 0.7 percent in the previous session, under pressure from a stronger US dollar.
The dollar rose versus a currency basket as traders, awaiting next week’s Federal Reserve meeting, eyed data that showed the number of Americans filing for unemployment benefits fell last week.
“Investors are starting to focus on next week’s Fed meeting, which should be constructive for the dollar and bearish for gold,” said INTL FCStone.
Gold is highly sensitive to rising US interest rates because it becomes less attractive to investors since it does not bear interest.
The greenback weakened after the Washington Post reported on Thursday that U.S. President Donald Trump has decided to replace his national security adviser, H.R. McMaster.
On the technical charts, Gold is trading in the positive zone below the 9 day, 20 day, 50 day and the 100 day moving averages but below the 200 day moving average. The RSI is at 45.02 and the MACD is ready to make a positive crossover above the signal line.
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