Equityworld Future-Comex gold prices to continue pelemahannya in trading this afternoon (Friday, 12/09/2016), a rebound in the US dollar after the European Central Bank decided to extend its monthly asset purchases by the end of next year.
Comex gold prices in February 2017 contract fell 0.31% or 3.60 points to US $ 1,168.80 an ounce at 11:00 am, after opening with a slight increase of 0.01% or 0.10 points at US $ 1,172.50 per ounce.
Equityworld Futures : Gold Prices Slump Depressed Strengthening US Dollar After ECB Decision
At the same time, the US dollar index which measures the movement of the US dollar against a basket of currencies monitored rose 0.09%, or 0.090 points to 101.190.
The dollar index yesterday closed rebounded 0.87% or 0.870 points at 101.100 positions after the European Central Bank (ECB) decided to extend the program of Quantitative Easing (QE) by the end of 2017 or longer-than-expected extension of the period for only six months.
“If the ECB has the ability to re-ignite the weakening of the euro against the dollar, then the dollar rally seen next phase, it will be detrimental to gold,” said Georgette Boele, commodity strategist with ABN AMRO, told Reuters today.
Helped weigh on the movement of precious metals is expected benchmark interest rate hike by the US central bank Federal Reserve at its policy meeting next week. US interest rates higher are known to increase the opportunity cost of ownership of the precious metal that is not yielding.
According to CME Group’s FedWatch program, the probability of a rate hike by the Fed is currently in the position of 97%.
In line with the weakening of gold, silver price in March 2017 contract fell 0.56% or 0.096 points to US $ 17.000 per ounce at 11.00 pm, after opening down 0.12%, or 0.021 points at 17.075 position.