Gold becomes cheaper after profit-taking

29.01.2016

During European morning trade, the gold shows a decline, as investors booked profits amid recent recovery of the precious metal to a half month highs, and in addition the US strengthening also puts pressure.

On the Comex division of the New York Mercantile Exchange, gold futures for February delivery fell 0.31% to $ 1112.20.

By the end of Thursday trading, February futures fell 0.02% to $ 1115.60 per ounce.

Futures are likely to receive support at $ 1099.30, the low of January 25, and resistance at $ 1125.70, the high of Thursday.

The dollar regained positions, as investors monitor the release of the revised data on US economic growth in the fourth quarter, expected later today, after the Federal Reserve failed to provide enough information about the rate hikes.

On Wednesday, at the end of the two-day meeting to determine the monetary policy, the Fed decided to maintain interest rates unchanged after its first increase in nearly a decade which was in December.

The dollar weakened after the release of statistical data on Thursday showing that the volume of pending home sales in the US increased last month, less than expected, while orders for durable goods fell in December much more than expected.

Silver futures for March delivery fell 0.26% to $ 14.205 per troy ounce, while copper futures for March delivery rose 0.18% to $ 2.057 per pound.

The USD index, showing the relationship of the US dollar against a basket of six major currencies, was up 0.26% and is traded at 98.88 USD.

As for other commodities, oil prices are rising and will finish up the second consecutive week due to investors' hopes for an agreement between oil producers to cut production.

Brent futures increased by $ 0.59 to $ 34.48 a barrel, while WTI futures were up $ 0.49 to $ 33.71. Since the beginning of the week Brent has risen by 6.5 %, while WTI by 4.6 %.

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