The price of gold within the global market dipped on Thursday, but maintained a firm range. Gold prices had earlier hit a more than 1 month high, and despite this dip, the prices are still in close proximity to that mark. While the dollar firmed in the face of renewed trade tensions, stock and global equities declined to give gold the leverage it needed to stay in close proximity of the recent highs.
Spot gold prices in the international were down by some 0.1 percent to record a price of $1,236.43 at the end of trading today. United States gold futures also decreased by 0.1 percent to be recorded at $1,241.7 for the day.
“This is a modest decline, not yet impacting the main trend which still remains moderately positive,” believed Carlo Albverto De Casa, who is the chief analyst at ActivTrades.
“If gold could hold above $1,235, this is definitely a very good signal, while surpassing $1,243 would open space for further recoveries.”
The United States increased in value after recent news of the arrest of Chinese Tech giant Huawei’s top executive. The arrest has put a shroud of doubt over the Sino-US trade implications. The greenback had fallen momentarily earlier this week, after a thaw in the trade war between the United States and China.
“Everything points to rising prices … technical signals and the seasonal effects are positive, and on top of that the stock market is signaling a global economic crisis,” said Alasdair Macleod, who is the head of research at GoldMoney.com.
“The G20 accord whereby America agreed to defer the next round of tariffs against China by 90 days has not convinced markets. The result was that we saw a big fall in Wall Street and indications are that fall will continue.”
Global stock markets have had a poor week, as they slumped for the third day running on Thursday. The poor performance has negatively affected the investor revenue streams.
“The (gold) market is looking for reasons to push higher, but not whilst we wait for another rate hike,” said an analyst from SP Angel John Meyer.
“The US Federal Reserve may go for a rate increase in December. The dollar may strengthen and that may weigh on gold prices on a short-term basis.”
The central bank of United States is expected to increase the interest rates within the country, after the Federal Reserve meeting on the 18th and 19th of this month. All investors from the gold, stocks and currency market have their eyes fixated on this meeting, and would take decisions for the future, based on what happens in the meeting.
Prices for Palladium in the international market fell by some 2.2 percent to reach the price of $1,216.80. Palladium has been very volatile lately, troubling investors.
“There is a very, very severe shortage of palladium for delivery,” Macleod wrote.
Silver prices also fell by 0.9 percent in the global market, leading fears of another hike in the price of the metal.