Friday, 06 December 2019 | 12:54 WIB

Gold Price Continues to Strengthen As Dollar Weakens

Illustration: Gold bars.

CHICAGO, NNC - Gold futures contract on the COMEX division of the New York Mercantile Exchange ended higher on Tuesday (2/13/2018) as the US dollar continued to weaken.

The most-active gold contract for April's delivery rose $4, or 0.30 percent, to settle at $1,330.40 an ounce.

The US dollar index, which measures the greenback against a basket of other major currencies, fell 0.47 percent to 89.69 as of 17:42 GMT.

Gold and the dollar usually move in the opposite direction. If the US dollar falls, gold futures will rise, as precious metals priced with the US dollar become cheaper for investors using weaker monetary units.

Meanwhile, the Dow Jones Industrial Average fell in the morning session. The Dow lost 83.88 points or 0.34 percent at 17.52 GMT, offering additional support for gold.

Nevertheless, stocks then rebounded from earlier losses and were traded in positive territory after gold futures closed.

In related developments, the new Federal Reserve chairman Jerome Powell said Tuesday that the central bank will continue to raise interest rates in stages and restore its balance sheet, backed up by a strong global recovery.

Some Fed officials have stated that recent stock market declines will not affect their economic outlook prospects, signaling that they will continue to raise interest rates three times this year, like in 2017.

As for other precious metals, silver for March delivery fell 4.2 cents, or 0.25 percent, to settle at $16,528 an ounce. Platinum for April delivery rose $2.90, or 0.30 percent, to close at $975.70 an ounce.