Soft US Dollar While Price of Gold Jumps Up
Gold prices were higher on the London spot market on Tuesday, finding support from a weaker dollar.
Area gold was up 0.8 per cent at $US1,112.97 a troy ounce in morning European commerce -- reaching a three-week high earlier in the session at $US1,119.42 an oz.
The dollar was down against a basket of currencies, including sterling, the euro as well as the yen. This was great news for the yellow metal as it's priced in dollars and becomes more affordable for other money-holders when the greenback gains to purchase.
More generally, India is becoming set to monetise gold possessed by families.
"The gold monetisation scheme will probably roll out in September. It might have a negative effect on physical demand," analysts at ANZ Research said.
India, jointly with China, accounts for over half of global gold demand -- usually in the kind of jewellery.
One of the other precious metals, place silver was up 0.9 per cent at $US15.343 an oz, area platinum was up 1.1 per cent at $US15.351 an oz and place palladium was up 1.5 per cent at $US616.41 an oz.