Gold prices touched their highest settlement in a month on Dec 27 prompted by the U.S. dollar falling to a four-week low. A weaker greenback also had a positive impact on silver prices. Rising gold and silver prices bode well for the overall precious metals market.

Gold lost some of its luster in 2016 after a tumultuous 2015 but has managed to maintain its Bull Run this year. Moreover, the yellow metal with a strong increase this year despite a silent fourth quarter. With gold prices shining, investors could think of investing in mutual funds that have significant exposure to the precious metals sector.

Gold Touches 6-Week High

Gold prices increased 0.2% to settle at $1,289.10 and hit an intraday high of $1,289.92 an ounce on Thursday, its best since Nov 29. Prices of the yellow metal registered nine straight days of gains and increased around 1% in November. It has also advanced more than 12% so far this year.

Additionally, silver prices advanced by 0.2% to $16.71 an ounce and hit an intraday high of $16.73 an ounce, reaching its highest level since late November. Moreover, other key precious metals like platinum and palladium also touched new highs recently. Platinum rose 0.6% to $922.60 on Dec27, reaching an intraday high of $927.20, its best since Dec 5. Palladium settled at $1,069.50 an ounce on Dec 26, touching its highest level since February 2001.

The decline in U.S. dollar was the primary trigger for the rise in gold prices. The U.S. dollar index declined by 0.2% to $93.4 on Dec 27. The greenback index has also posted a fall of 9.7% so far this year. The U.S. dollar fell recently after the Fed officials reiterated their earlier projection of three possible rate hikes in 2018.

Also, the central bank did not alter its initial forecast for inflation. Moreover, concerns remained over Trump’s Tax Cuts and Jobs Act of 2017. Experts now predict that following the implementation of the tax overhaul, the Federal budget deficit will exceed $1 trillion in 2018.

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