Concern about growth buoys gold
The metal is benefiting from the pressure the dollar is under due to government shutdown in the US and the worry that it will limit growth
Bengaluru — Gold prices rose on Thursday as the dollar declined due to concern the prolonged US government shutdown will limit economic growth at the same time that global growth is slowing as well. Spot gold was up 0.15 at $1,283.31/oz, as of 3.26am GMT, while US gold futures were down 0.1% at $1,282.60/oz. “We are seeing a weaker US dollar for the moment, which is in general supportive for gold,” Michael McCarthy, chief market strategist at CMC Markets said. However, McCarthy cautioned that bullion price gains are limited by slowing investor buying as indicated by price charts used by technical traders. “The issue for gold is there is a very heavy resistance seen around $1,290 and $1,310. A further weakening of the US dollar could be supportive. But, we need something to really push gold through the resistance level,” he said. The US dollar index, which measures the greenback against a basket of six major currencies, fell for third day, dropping 0.3% during that period. However, A...
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