Gold News: Dollar pushes gold price to February 2010 low
Gold News
On Tuesday on the Comex market in New York, gold futures with December delivery dates were pushed to a five-year low by a strong dollar.After a price of $1,064 an ounce in early afternoon trade, the commodity is now trading at an impressive record low which goes all the way down to the price in February 2010 is . Seemingly destined for a third down year in a row for 2015, the metal is having its worst run since 1998.
At 99.83, the USD Index is back within striking distance of 12-year highs above the 100-level struck mid-March. While nowhere near its peak of the mid-80s, the greenback has made a strong run over the past couple of years appreciating more than 23% since the November 2013.
The knowledge that we have is that gold and the dollar move in opposite directions when. when one rises the other depreciates. The dollar’s all-time peak of 164.7 was reached in February 1985. That coincided with a bottom in the price of gold of $284.25 an ounce.
Gold received a small bump yesterday after the weekend attacks in Paris prompted a modicum of safe haven buying, but Tuesday’s performance is another indicator that gold’s attraction as a valuable asset in times of chaos has reduced.
“Gold remains stuck at low levels showing along with oil trading that while devastating and tragic, last Friday’s terrorist attacks in Paris have not sparked a flight to safety, confirming the resilience of nations who do not back down in the face of terrorism,” Colin Cieszynski, chief market strategist at CMC Markets said in a Tuesday.
