Gold rises with the increase in oil prices and the descent of the dollar

12 23, 2015 11:43

SINGAPORE (Reuters) - Gold rises on Wednesday, supported by the recovery in oil prices and the dollar slipped as the yellow metal moved in a limited range in thin trade ahead of the holiday season.
Gold rose 0.3 percent in the spot contracts to $ 1074.98 an ounce ounce by 0643 GMT. The metal fell 0.6 percent on Tuesday after surging over two days.
Oil prices stabilized after it tumbled to its lowest level in 11 years earlier this week. Gold is associated with the oil is seen as a positive for the metal as a hedge against inflation, led by crude oil prices.
The recovered gold after record losses following the adjournment of the Federal Reserve (the US central bank) interest rates last week for the first time in about ten years.
But the outlook for the metal is still downward in light of the Fed is ready to raise interest rates over the next year in addition to the energy markets that are prone to further decline.
He said Societe Generale Bank that low inflationary pressures in the United States and elsewhere because of low energy prices also will reduce the demand for gold.
He predicted a number of brokerage firms gold descent to less than a thousand dollars an ounce next year.
Silver rose 0.13 percent to $ 14.274 an ounce and palladium rose 0.56 percent to $ 555.75, while platinum down 0.06 percent to $ 869.85 an ounce.