The price of gold latched on to majority of its recent gains, trading close to a three-week high reached during the previous session. Speculation ahead of last week’s release of minutes from the Fed’s recent meeting resulted to the offset safe haven demand for precious metals and other commodities.
Gold for urgent delivery lost approximately 0.1 % or 90 cents to $1,217.25 per ounce as of last week and was traded over two % above its 50-day simple moving average of $1,191.02. Despite that fact, it was still able to rally over 3 % during the previous three-sessions and landed $1,222.95 last week which was its highest since December 15, 2014.
Bullion just recently found support from safe-haven demands while concerns that Greece will soon be exiting the Eurozone as its finalised its plans to do so. The Bullion Desk mentioned the INTL FCStone correspondence saying that the Political uncertainty in the region ahead of that country’s election on January 25 is turning out to be a rather expedient bullish story for gold as the reality is that if Greece decides to elect the opposition party, it will be inevitable that it will leave the single currency block.
Based on the analysis of FastMarkets, the precious metals have rallied in precious days primarily because in safe-haven purchases, but are no doubt feeling a headwind from a scrawny oil prices and the more vibrant dollar.
Citics Future Co. said that the Fed minutes might actually hinder the rally. The precious metal posted its first ever consecutive yearly decline in over a decade as the Federal reserve ended its quantitative programme in October and moved closer to increase its interest rates.
On the COMEX in New York , gold for the February delivery slid $3.6 to $1,215 as of last week. Market participants are looking forward to the discharge of the minutes from the 16-17 December FOMC meeting which is already suppose to be due.