The gold price was under pressure from a stronger dollar during Tuesday January 3 trading, drifting back from the previous week’s highs.
The dollar index was last at 103.22, up 0.84% – investors returned to the greenback following a spate of year-end profit-taking.
The spot gold price was recently indicated at $1,148.25/1,148.55 per oz, down $2.80 on the previous close. It had peaked at $1,163.28 per oz during end-of-year trading, its highest since December 15.
- Expectations of three more interest-rate rises from the US this year create headwinds
- But geopolitical uncertainty ahead of the new US administration could attract investors back.
- “We are not going to dismiss the precious metal completely considering we still have the Trump card in the pack. At a time when even his tweets are destabilising stocks, any erratic policy proposals, let alone mismanaged implementation, can potentially trigger market uncertainty and increase the investors’ interest on gold,” Mihir Kapadia, CEO and Founder of Sun Global Investments, said.
Silver little changed, platinum and palladium higher
- The spot silver price was recently indicated at $15.935/15.970 per oz, down $0.06.
- Platinum at $903/908 per oz was $5 higher while palladium was up $8 at $684/689 per oz.
Other commodities and data releases
- The WTI crude oil spot price rose 2.29% to $54.95 per barrel and Brent crude at $58.12 was also 2.29% higher.
- The US ISM manufacturing PMI and construction spending data are due later today as well as the final manufacturing PMI from Japan.
(Editing by Mark Shaw)