Gold prices rise marginally-Hurricane Irma aftermath

For the first time in 3 sessions, gold prices traded on the green on Wednesday (13th September) but gains were slowed by continued buying of risk assets by investors. Gold prices also rebounded in Asia as tensions on the Korean Peninsula faded presenting a chance to buy as the Indian festival season nears.

Comex gold futures were up $2.30 to trade at $1,334.98 a troy ounce, about 0.2%.In the prior session; it had fallen to its lowest since the start of the month which was at $1,326.70. Gold futures for December delivery on the Comex division of the New York Mercantile Exchange hiked 0.33% to trade at $1,337.04 a troy ounce. India and China vie for the title of the world’s top gold buyers and importers.

On Tuesday, Gold performed dismally as investors’ interested to riskier assets such as stocks as worries on Hurricane Irma and North Korea continue to fade.

Gold prices had rallied to a one year rally on Friday to trade at $1,362.40 on Friday(8th September).The performance of Gold was bullish despite Hurricane Irma’s impeding threat and the possibility of yet another nuclear test by North Korea to mark its anniversary of its founding.

Investors yes were trained on U.S. economic data for clues on a possible interest hike this year and timing of Federal Reserve’s balance sheet reduction. The consumer price inflation data to be released may also affect prevailing gold prices.

Markets remain uncertain on whether the federal reserve will raise the rates before this year ends over the subdued inflation outlook. The fed is expected to commence balance sheet reduction this fall.

Meanwhile on Comex, Silver futures rose 0.2%,or 4.1 cents to trade at $17.93 a troy ounce. It established a new four-month high of $18.29 last week.

Platinum stagnated at $986.45 while Palladium inched up 0.3% to trade at $986.25 an ounce.

Analysts, however, have been quick to downplay gold’s poor start to the week as data pointing to a surge in buying activity suggests that demand for the yellow metal remains supported.

Net bullish bets on gold rose to 245,300, the highest in nearly twelve-months, according to a report from the Commodity Futures Trading Commission (CFTC) on Friday.