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Precious Metals

Gold price consolidates above $1,130/oz (£922.37/oz) on year-end bargains

Gold price

The gold price was a touch higher on the morning of Friday December 23 in London, finding some support from bargain hunting before the year-end holidays but lacking sufficient momentum for a marked breakthrough.

The dollar index was recently unchanged at 103.08, having recovered from yesterday’s dip to 102.59 after the release of disappointing US data.

The spot gold price was recently indicated at $1,131/1,131.40 per oz, up $2.85 on Thursday’s close.

“The book-squaring nature of moves appears to be the order of the day in pre-Christmas trading,” a trader said.

In the other precious metals, the spot silver price at $15.80/15.830 per oz was up $0.005. Spot platinum was up $2 at $905/910 per oz and spot palladium nudged $5 higher to $656/661 per oz.

“Precious metals remain on a back footing although downward momentum has slowed. Still, there is simply a lack of buying around while broader markets remain buoyant and optimism for 2017 remains high,” Metal Bulletin analyst Will Adams said.

Precious metal prices have come under pressure since the US Federal Reserve announced it would raise interest rates this month.

In data, US new home sales, revised University of Michigan (UoM) consumer sentiment and revised UoM inflation expectations are due later today.

December 26 and 27 are public holidays in the UK for the Christmas celebrations.

Paul

The author Paul