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Gold prices down in Asia as dollar recovers after Trump press conference

Published 01/11/2017, 08:58 PM
Updated 01/11/2017, 09:01 PM
© Reuters.  Gold dips in Asia
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Investing.com - Gold prices eased in Asia on Thursday as the dollar recovered a bit from a sell-off after President-elect Donald Trump held a freewheeling press conference overnight that was slim on details of economic policies.

Gold for February delivery on the Comex division of the New York Mercantile Exchange eased 0.07% to $1,195.75 a troy ounce, while copper futures rose 0.50% to $2.613 a pound. The U.S. dollar index was nearly flat at 101.69 after dropping to about 101.46 overnight, offering support for the precious metal which is priced in greenbacks. A weaker dollar benefits key gold buyers such as China and India.

In addition, there are a handful of Fed speakers on tap, including Chair Janet Yellen on Thursday, as traders look for more clues on the likelihood of higher interest rates later this year.

Overnight, gold prices rose to a fresh six-week high on Wednesday.

Trump has been credited with being a major catalyst behind the market's impressive rally since election day, although he has yet to outline his economic policies in detail. But his press conference ranged from repeated questions on Russian hacking to citing the drug industry as a new target on getting manufacturing jobs back home.

He will officially take office on January 20.

The Fed had indicated in December that at least three rate increases were in the offing for 2017, according to a forecast of interest rates from members of the central bank, known as the dot-plot.

However, traders remained unconvinced. Instead, markets are pricing in just two rate hikes during the course of this year, according to Investing.com’s Fed Rate Monitor Tool.

Global financial markets will continue to focus on key U.S. reports in the week ahead, with Friday’s retail sales data in the spotlight.

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