Gold breaks rally as dollar strengthens

(Technical replay)

Jan 16 (Reuters) – Gold prices pulled back from an eight-month high on Monday as the dollar strengthened, but expectations of a less aggressive rate hike by the US Federal Reserve kept gold well above $1,900 an ounce.

The spot price of gold by 15:45 Moscow time fell by 0.29% to $1.914.6 per troy ounce.

Palladium shed 1.46% to $1,763.83 an ounce, while silver shed 0.82% to $24.05 an ounce. Platinum dropped 0.7% to $1,057.27.

The dollar index rose by 0.1%, which made gold less attractive to holders of other currencies.

“The fact that gold has managed to break $1,915 over the past few days is a positive sign and gold is now consolidating for a bit,” said Kinesis Money’s Carlo Alberto De Caza, adding that the underlying trend for the precious metal remains positive as investors anticipate less significant move by the US Federal Reserve at its meeting in February.

Fed key rate futures are now pricing in a likely quarter-point rate hike, after last week’s data pointed to an unexpected decline in US consumer prices in December. The original message in English is available by code (Kavya Guduru in Bangalore)


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