• MTS Gold Evening News 201608010

    10 Aug 2016 | Gold News



Gold rose on Wednesday as the dollar fell on lower expectations for a U.S. rate hike after weaker economic data, while platinum and palladium climbed to their highest in over a year.

The dollar weakened on speculation the Federal Reserve will be slow to raise interest rates amid uneven global growth, buoying gold and bonds. Asian stocks held near a one-year high as Hong Kong’s shares gained.

The U.S. currency slid against all major peers, dragging the Bloomberg Dollar Spot Index down for a second day. A gauge of emerging-market currencies rose to the highest since July 2015, gold extended Tuesday’s rally from this month’s low and 10-year bond yields dropped in Australia and Japan.

The Bloomberg Dollar Spot Index, which tracks the greenback against 10 major peers, fell 0.4 percent as of 12:42 p.m. Tokyo time. The MSCI Emerging Market Currency Index added 0.4 percent, climbing for the fifth day in a row.

“There’s already a lot of people that are very bullish on gold,” said Luyet, noting that wagers tracked by the Commodity Futures Trading Commission still show substantial bets on further gains. “Going forward, the U.S. economy is still robust, and the Fed is hiking rates. I don’t think that will really provide a supporting environment for gold.”

Reference: Bloomberg, Reuters

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