Gold price temporary rises, US dollar declines on season holidays

Mumbai-India (Dec 25)  Annual season holidays and the attractive levels gold's reached since Trump's election gave it a temporary chance to rise, according to analysts.

Spot gold added 0.34% to $1,134.50 per ounce on Friday.

Gold decreased more than $200 per ounce after US President Donald Trump won the presidential elections on 3 November.

The US dollar index declined 0.12% to 102.95 points.

US dollar hiked 5% against basket of currencies since the elections of republican Donald Trump as the President of the United States on 3 November.

The decline of the US dollar, amid reluctant investors approaching Christmas, gave gold a change to rise again, technical analyst, Alaa Eldin Farhan told Mubasher.

Farhan added that figures showed that increased weekly jobless claims weakened the US dollar which recorded its highest level in 14 years last week.

Economic growth figures will give the opportunity to re-anticipate about the interest rate hike, which may push the US dollar towards standard levels reach 103-105 points, Farhan noted.

The analyst pinpointed that anticipations increase the chance of raising the interest rate at the beginning of 2017, amid positive figures, while expectations assure that gold will decline to $1,122 – $1,100.

Moreover, technical analyst, Mahmoud Al Tamer, told Mubasher that gold is still moving downwards and targets $1,080 - $1,055 per ounce.

The analyst advised traders to sell and make use of any hikes to gain profits, and concerning the US dollar, he advised investors to increase positions.

Source: Mubasher