3 months ago
Commodities

Gold Prices Slip as Dollar Recovers

Investing.com - Gold prices fell on Friday in Asia as the U.S. dollar recovered. Gold Futures for February delivery slipped 0.45%

Investing.com - Gold prices fell on Friday in Asia as the U.S. dollar recovered.

Gold Futures for February delivery slipped 0.45% to $1,262.25 at 1:26 AM ET (06:26 GMT) on the Comex exchange, while the U.S. dollar index, tracking the greenback against a basket of six currencies, gained 0.2% to 95.938.

The Fed raised rates as expected by a quarter point at its December meeting on Wednesday. But it also sent out mixed signals to the market by lowering its economic forecast for 2019, while hinting that it would continue raising rates, but at a slower pace. Most Fed governors said they anticipate only two rate hikes next year, versus previous expectations for three.

In other news, U.S. President Donald Trump will not sign a Senate-passed spending bill, House Speaker Paul Ryan said Thursday.

Overnight, the Dow and Nasdaq posted their lowest closes since October 2017, while the S&P 500 finished at its lowest level since September 2017.

Asian stocks also fell on Friday in Asia, with Chinese stocks down more than 1%.

"It's a rare combination, equities and the dollar taking it on the chin at the same time, leaving investors with little choice but the relative safety of gold," said Tom Beller, a market strategist for precious metals at RJO Futures in Chicago. "Right now, the next resistance is $1,280 but we're definitely on track to $1,300 if we get past that."