Gold supported by weaker US dollar

The spot gold price remained supported during Asian trading hours on Tuesday December 6 after the US dollar weakened.

The spot gold price was recently quoted at $1,173.85/1,174.20 per oz, up $4.48 on the previous close. Trade has ranged from $1,169.70 to $1,175.40 so far.

The US dollar index had fallen as low as 99.85 on Monday, the lowest since November 15. It was recently at 100.10 on Tuesday, down 0.09% from its previous close.

“The short-term consolidation of the US dollar index is obvious which gives the spot gold price room for a [recovery],” China’s Zhengjin Precious Metals said on Tuesday morning. The broker sees support for the yellow metal at $1,160 per oz and resistance at $1,190 in the near term.

Investors are now waiting for the next US Federal Open Market Committee (FOMC) meeting on December 13-14 – market participants see a 93% chance of a rate increase during the meeting, according to the CME FedWatch Tool.

Recent positive global and Chinese macroeconomic data has boosted sentiment in the market, as well as odds for a US rate increase, the latest being the November Caixin Services PMI released on Monday, which at 53.1, exceeded the projected 52.7.

The US ISM non-manufacturing PMI at 57.2 was also higher than the forecast 55.3. The services PMI at 54.6, however, fell short of the expected 54.9.

Other key US data due later on Tuesday includes revised non-farm productivity, trade balance, factory orders and IBD/TIPP economic optimism.

In other commodities, the Brent crude oil spot price was recently at $54.55 per barrel on Tuesday, up 0.69% from Monday’s close.

In currencies, the US dollar index fell 0.09% to 100.10 recently on Tuesday.

In equities, the Shanghai Composite rose 0.02% to 3,205.43 so far today.

In the other precious metals, the spot silver price increased $0.145 to $16.865/16.885 per oz. Platinum at $940/945 per oz was up $9, while palladium rose $9 to $748/753 per oz.

On the Shanghai Futures Exchange, gold for June delivery was recently at 268.55 yuan ($39) per gram, and the June silver was at 4,188 yuan per kg.

(Editing by Kyle Docherty)

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