Gold prices are reported to have normalised on Wednesday after a four week long discouraging performance. The stabilisation is believed to be in response to the recovering of the US dollar.
Brian Lan, managing director at dealer GoldSilver Central in Singapore, has revealed that gold prices are stabilising. He said:
There won’t be much movement in gold prices as stocks have gone up to their highs in Asia and investors are not seeing gold as a good safe-haven.
World markets normally respond to developments in some countries. A weaker dollar is well known for making the gold cheaper for holders of other currencies.
It is claimed that gold prices may have also responded to US-Sino talks as well as developments around Britain’s departure from the European Union.
INTL FCStone analyst Edward Meir wrote in a note:
Brexit is approaching some conclusion; in the least, this should weaken the dollar against both the sterling and the euro and perhaps give gold a bit of a lift.
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