Market aims to recoup part of its two-session loss of more than $31
By Myra P. Saefong, MarketWatch
TOKYO (MarketWatch) — Gold futures climbed more than $12 an ounce on Globex during afternoon trading in Tokyo, with fresh weakness in the U.S. dollar helping the market recoup some of its two-session loss of more than $31.
Gold for December delivery was up $12.30 at $1,349.20 an ounce after tapping an intraday high of $1,349.40 in electronic trading.
The contract, which has tallied a two-session loss of $31.60, settled at its lowest level in three weeks Wednesday in New York. See Wednesday’s metals story.
Gold’s latest rise “is directly tied” to the lower U.S. dollar index, said Darin Newsom, senior analyst at Telvent DTN.
The dollar index (DXY 78.71, -0.37, -0.47%) , which measures the greenback against a basket of six major currencies, was at 78.820, down from 79.099 late Wednesday in North American trading.
“Like most commodities, gold is at a key price point,” said Newsom. “If it were to stay under pressure it would probably trigger a sharp sell-off.”
“I think we will see this battle played out on many fronts as the [U.S. dollar index] tries to establish a long-term bullish technical signal,” he said. “If it succeeds, commodities could quickly break through this initial support.”
