By Jeff Desjardins
10 December 2017
Gold prices rose to fresh three month highs on Tuesday in the first trading day of 2018, propelled higher by a weaker dollar.
Comex gold futures rose 0.21% to $1,312.20 a troy ounce by 03:45 AM ET (08:45 AM GMT), the strongest level since September 26.
Recent weakness in the dollar has supported gold prices by making the dollar-denominated metal cheaper for holders of other currencies.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was down 0.36% to 91.66, the weakest level since September 22.
The index ended 2017 down 9.8%, the biggest annual percentage decline since 2003.
The dollar weakened in 2017 as the global economy gained momentum fueling expectations for tighter monetary policy in other countries, which would lessen the divergence between the Federal Reserve and other central banks.
Market watchers were looking ahead to Wednesday’s minutes of the Fed’s December meeting for further hints on the future path of monetary policy.
Investors were also awaiting Friday’s U.S. nonfarm payrolls report for December.
Palladium posted the strongest increase among precious metals in 2017, advancing 57% amid concerns over the supply outlook.
Copper dipped 0.14% to $3.296 a pound. Copper prices added 31% for the year in 2017 as prices of the industrial metal were boosted by robust demand from China, the world’s largest base metals consumer, as well as a favorable global economic outlook and supply disruptions around the world.
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This article was originally published at Investing.com.