Gold fluctuates just above $990 with investors focused on dollar

image On Thursday gold increased a little after it failed from $1,000 level as investors turned their focus on dollar. The further weakening of the greenback is said to benefit the precious metal.

Gold had topped the psychologically important $1,000 level for a second straight session on Wednesday before retreating to a low of $986.95.

But worries about the dollar’s deterioration amid growing risk appetite and diversification fears over the traditional reserve currency continued to support the allure of gold as an alternative asset, traders said.

Spot gold XAU= traded at $992.60 per ounce as of 0307 GMT, up 0.2 percent from New York’s notional close of $991.15. It had risen as high as $1,007.45 on Tuesday, its highest since March 2008.

U.S. gold futures for December delivery GCZ9 fell 0.3 percent to $994.40 per ounce.

On Wednesday the contract fell $2.70 to $997.10 on the COMEX division of the New York Mercantile Exchange. December gold futures had risen as high as $1,009.70, their highest since February, on Tuesday.

Despite a rally in gold prices earlier this week, there were no new investment inflows into the world’s largest gold-backed exchange-traded fund, the SPDR Gold Trust GLD, this week, spurring some disappointments. High prices have already contained jewellery demand. The holdings stood at 1,077.63 tonnes as of Sept. 9, unchanged since Friday.

In other metals, platinum XPT= was little changed after gold-led gains helped send the white metal to a 12-month high of $1,295 an ounce on Wednesday.

Platinum, mainly used to clean vehicle exhaust fumes and to make jewellery, was at $1,275, versus New York’s notional close of $1,276.

Precious metals prices at 0317 GMT

Metal Last Change Pct chg YTD pct chg Turnover
Spot Gold 992.90 1.75 +0.18 12.81
Spot Silver 16.36 0.09 +0.55 44.52
Spot Platinum 1273.00 -3.00 -0.24 36.59
Spot Palladium 289.50 -1.00 -0.34 56.91
TOCOM Gold 2952.00 -35.00 -1.17 14.73 28093
TOCOM Platinum 3794.00 -71.00 -1.84 43.06 10416
TOCOM Silver 484.00 -9.00 -1.83 51.58 287
TOCOM Palladium 863.00 -16.00 -1.82 56.91 199

TOCOM prices in yen per gram, except TOCOM silver which is priced in yen per 10 grams. Spot prices in $ per ounce.


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