NEW YORK-Gold prices stretched past gains on Friday in noiseless holiday trade, after the dollar retreated further against its counterparts and hit an eight-week low.
The most actively traded gold contract, for February delivery, rose $1.70, or 0.1%, to settle at $1,214 a troy ounce on the Comex division of the New York Mercantile Exchange.
Gold’s run up in value during the past few days has been aided by a concurrently weaker dollar, and that strength is liable to fade once markets get past the holiday lull, said Dan Heckman, a nationalistic investment consultant with U.S. Bank Wealth Management.
The ICE Dollar Index, which tracks the dollar against a goal of international currencies, had briefly hit an eight-week low of 79.686 on Friday. Gold is priced in dollars and becomes less costly for overseas buyers when the dollar weakens. “If you trail what the dollar has done over the last three days, you see why gold’s popped up,” Mr. Heckman said.
But the big icon for gold relic rigorous, he added. The Federal Reserve’s conclusion to scale back its bond purchasing is set to sabotage investor appetite for the harsh asset, he said. “The clear tendency is for interest rates to appear, and that typically makes owning preciousl metals much costly because they’re not income-producing assets,” Mr. Heckman said.
On Friday, the consent of 10-year Exchequer notes rose as high as 3.021%, it is maximal even since July 2011.