Gold traders have a lot to smile for in the early hours of 2017, considering the fact that the price of gold rose 0.4% to reach a high price of $1,156.75 per ounce on Tuesday trading, Reuters reports. And then, US gold futures also did good by climbing 0.5% to reach $1,157.20.
Gold prices soared this high in the first day of trading despite the strength of the dollar against which it is traded. Gold gained over 8% in the markets last year, and it continued this good streak into the new year 2017 to the delight of gold traders.
The prices and trading values of gold dipped slightly in December after the US Fed raised interest rates, and this is significant of the fact that gold is very responsive to changes in interest rates as imposed by the Federal Reserve.
Although it is possible that gold may rebound before Friday since non-farm payroll data for the US may come in before then, the sensitivity of gold to rates adds value to bullion among other assets. This means any raise in rates would impact seriously on the price of gold in the trading markets.
In Asia, gold remained parallel on Tuesday trading without responding to fluctuations occurring within European markets. But then, the dollar continued to climb after dipping slightly last week.
Meanwhile, other precious metals such as silver and platinum among others were also affected by the trend with gold, FXStreet stated. Silver climbed 0.7% to reach $16.04 and platinum rose over 1% to reach $911.40 per ounce, while palladium reached $683.10 per ounce with a 0.7% rise.