Gold price edges higher as dollar eases; more volatility likely

Nov 21, 2016 - 10:31 AM GMT
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Gold edged higher on the morning of Monday November 21 in London, reflecting a pause in the dollar’s rise.

The spot gold price was recently quoted at $1,215.65/1,215.95 per oz, up $7.30 on the previous close. Trade has ranged from $1,206.85 to $1,217.05 so far.

The dollar index was recently quoted at 101.10, down 0.25%. It had surged as high as 101.49 on Friday. The dollar has strengthened to reflect increasing expectations that the Federal Reserve will raise rates in December.

The low prices have induced some interest in the physical market. Russia purchased the most gold in 18 years in October – central bank holdings rose to 50.9 million ounces from 49.6 million ounces, ANZ said in a note.

But ETF investors are continuing to pull out – holdings have dropped by 54 tonnes or 2.5% to 2,109 tonnes as of November 18 after rising 33 tonnes in October, 27 tonnes in September and 16 tonnes in August.

With US markets set to close later this week for Thanksgiving holidays, volatility is likely to be pronounced into the end of the month, Commerzbank noted.

In the other precious metals, the spot silver price was up 16 cents higher at $16.700/16.725 per oz. Platinum at $925/935 per oz was up $10 and palladium at $727/733 per oz was $8 higher.

(Editing by Mark Shaw)