Precious Metals Gain as Dollar Slumps
All the precious metals including gold and silver marked higher as a gauge as the dollar reached its eleven months low following no interest rate hikes in the close future. The weaker than expected economic growth prospects in the United States made the Fed delay the interest rate hike which added further appeal to the non-yielding assets.
The gold market rushed ahead even with speculators moving back a step. Last week, the gold futures posted its biggest advance in the past two months. The bullion moved to its highest level in one year or more.
Silver turned out to be a big winner as it had its best month in almost three years, since 201. The dollar's slump coupled with better outlook for industrial demand pushed the metal higher up.
In 2016, the Bloomberg Precious Metals Subindex scaled twenty three percent as demand surged for stores of value. It is also the largest gain at the beginning of a year since a decade.
The slowing US growth highlighted the reason why the Feds are closely watching the data once more rather than increasing the interest rates. It's a cautious move that's pushing investors to look for other options, which is giving the precious metals benefit.
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