Weak Dollar Support in Precious Metal Gold

Gold started the week with an upward trend after the easing of the dollar gave the precious metal a breather.

Gold, the so-called safe-haven investment instrument, realized its best weekly close since mid-August after the decline in the dollar provided relief to the precious metal. Asian markets also recorded a rise. The ounce of gold reached the level of 1,670 dollars. Spot gold recorded its first weekly gain in three weeks last week as the easing in bond yields increased the attractiveness of the non-interest-bearing precious metal. On the first day of the past week, the rapid rise in the dollar and bond yields caused gold to fall to a two-year low. Nevertheless, it is estimated that volatility may be seen in spot gold after the arrival of critical data on the still tight US labor market this week. While it is noted that the data may give clues about the Fed's interest rate hike path, it is also underlined that strong analysis may cause an increase in bond yields, which could potentially be harmful for gold. According to a report released on Friday, financial authorities in China instructed the country's largest state-owned banks to provide more financing to the struggling real estate sector in the last four months of the year. Meanwhile, the new chief executive of bank and finance company Credit Suisse Group AG asked investors for time to present a strategy to turn the situation around after sharp falls in the bank's share price. "Improvements in the outlook for China and the prospect of further declines in bond yields could improve gold prices," said Gnanasekar Thiagarajan, Director at Commtrendz Risk Management Services, adding, "A further fall in Credit Suisse shares could also provide some safe-haven demand for gold." Follow Global Economic Developments on Social Media! Click here to follow Ieconomy official Facebook account! Click here to follow Ieconomy official Instagram account! Click here to follow Ieconomy official Twitter account!