Gold price lifts on US dollar softness
London (Nov 19) Gold prices in Europe rose on Wednesday, supported by a slightly softer dollar.
Spot gold was trading at 1,198.67 a troy ounce, up 0.2 per cent, in morning European trade.
Gold has moved higher with the euro, said David Govett, head of precious metals at Marex Spectron. "But oil is looking very weak and this may weigh on the commodities at some point if the dollar does come back."
As the yellow metal is priced in dollars, it becomes cheaper for other currency-holders to buy when the greenback softens, leading to demand spikes and price rises.
Looking ahead, market participants will be watching for today's release of the US Federal Open Market Committee meeting minutes in order to ascertain the likely direction of the dollar.
The rest of the precious metals were mostly higher. Silver was up 0.5 per cent at $US16.258 an ounce, platinum was up 0.2 per cent at $US1,206.00 an ounce, and palladium was down 0.2 per cent at $US769.50 an ounce.