Forex Marketz Daily Forex News – Fully Markets Update
This morning, gold got another boost from a broadly weakening U.S. currency. As the dollar weakens investors are buying the yellow metal as they run to a safe haven amid inflation concerns.
As of 1:30 am GMT, Spot gold (XAU/USD) was 0.2 percent to $1,350.51 an ounce. The bullion hit a three week high at $1,361.76 on Friday.
The precious metal was up 2.4 percent last week. This was its best weekly gain since September.
U.S. gold futures were down 0.2 percent to $1,353.10 per ounce.
The U.S. dollar index, which measures the dollar against a basket of six currencies, was down 0.1 percent to 88.99.
The almighty U.S. dollar has been weighed down by a number of factors in 2018. These include concerns that Washington wants a weak dollar strategy. This is, in turn eroding its yield advantage as other countries start to wind down their monetary policy.
Gold Traders watch Headlines out of India
India is a big importer of the precious metal. Perhaps the largest importer of the precious commodity. Headlines, today, show that their Federal Police India’s federal police detained two employees of Punjab National Bank. This is a state run commercial lender. The bank says it has been the victim of a $1.77 billion theft. During these first arrests in an ever widening probe into the country’s biggest corporate banking scam.
In other news, physical gold was sold at a discount in India for the first time in three weeks. This comes as demand for the commodity is decreasing thanks to an increase local prices. Elsewhere, the Lunar New Year holiday reduced demand at the end of the week in Asia.
