Weak Dollar Pushes Gold To Levels Not Seen in Two Weeks
Gold futures soared more than 1% on Thursday, aiming to extending its advance for a fourth-straight trading day. The precious metal reached a two-week high as the U.S. dollar retreated after a downbeat economic data.
Gold futures for February delivery jumped 1.25% to trade at $1158.47 an ounce in light volume. This is the level not seen since December 14th. The dollar index dropped 0.55% to 102.66.
According to data released by the Commerce Department on Thursday, the U.S. trade deficit climbed 5.5% last month to a seasonally adjusted annual $65.3 billion. November’s reading was larger than the $62.5 billion gap forecast by economists. Particularly, exports increased 1.0% to $121.7 billion while imports advanced 1.2% compared to those of October.
As most gold is priced in dollars, a weaker greenback makes the precious metal less expensive for other currency holders, presumably raising demand.
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