Wednesday, November 25, 2015

investing in gold : Gold remains supported on geopolitical tensions and a weak US dollar

investing in gold : The price of gold remained supported during Asian trading hours on Wednesday after news of Turkey shoot down a Russian warplane raised geopolitical tensions and the weakness of the US dollar.

Gold was last at $ 1,080.20-1,080.50 per ounce, up $ 4.90 from Tuesday's close. And it ranged trading at $ 1,074.60-1,080.40 so far.

Turkey had informed the United Nations Security Council on Tuesday it had shot down a Russian plane that allegedly entered Turkish airspace near the Turkish-Syrian border.

The price of gold jumped above $ 1,080 on Tuesday after the news, but eased thereafter.

"Gold is challenging resistance to lower selling strength after falling to its lowest level in six years, from $ 1,065, noting that the metal has become oversold," said Tom Moore, a commodities analyst with Fastmarkets.

"Amid growing expectations for the Federal Reserve to raise interest rates next month, however, is the prospect of rising metal likely to be capped."

In currencies, after recording the highest in eight months 100 on Monday, the US dollar index began to ease in the past and was 99.44, up 0.2 percent from Tuesday's close.

Data released in the US on Tuesday, the preliminary GDP showed an annual growth of 2.1 percent compared to an increase in the expected 2.0 percent. The consumer confidence index rose CB but at 90.4 compared with 99.3 expected while the Richmond manufacturing index rose -3 - has seen flat.

A series of economic data are the result of the United States later in the day before the Thanksgiving holiday on Thursday - orders this including the core durable goods and unemployment claims, the core personal consumption expenditures price index, durable goods orders, and personal spending and new home sales.

In stock, the Shanghai Composite Index rose 0.04 percent to 3,614.544 yet on Wednesday.

In other precious metals silver rose $ 0.11 up to $ 14.25 / 14.30 recently. Platinum jumped $ 9 to $ 846/851, while palladium rose $ 5 to $ 539 / $ 544 so far on Wednesday.

On the Shanghai Stock Exchange, gold for June delivery was unchanged at 225.10 yuan per gram, while silver was flat in June 3259 yuan per kilogram.