Gold prices are way higher during the pre-holiday season as trading investors are looking up for more indicators in the U.S. economic data which helps strengthen the economy. This is in behalf of the expected light trading volume as we enter the holiday season – Christmas Eve and Christmas day.
As shown in investing.com in their Thursday release, “gold for February delivery on the Comex division of the New York Mercantile Exchange tacked on $4.10 or 0.38%, to trade at $1,072.40 a troy ounce during European morning hours. However, a day earlier, gold dipped $5.80 or 0.54%, the second straight daily loss.”
The U.S. dollar index was down, again, at 0.4% which is close to gold’s 0.38%. The dollar index measures the dollar’s value against the six major currencies of the world. The drop occurs after the Federal Reserve announced its raise of interest rates last December 17 of this year.
Based on forecasts, gold is expected to have an annual decline of 10% in the year 2015 as speculations over a Fed rate hike dominated the market’s sentiments. A raise in the interest rate is not so-good news for gold investors because gold cannot compete with other assets offering higher interest rates.
On the other hand, copper are also on the same track as gold. It dropped 0.3 cents or 0.16 % to $2.121 a pound. Like gold, this red metal is speculated to track of 26% in 2015 relative to China’s current condition. It is known that Asia is the world’s largest copper consumer which tallies 45% of the world’s total consumption.
However, on the other hand, silver futures for March delivery is raised 1.8 cents or 0.13% to trade at $14.30 a troy ounce despite its speculated annual decline of 8% in 2015, says investing.com.