Gold is weakly more expensive to increase the demand for safe assets

Золото слабо дорожает на увеличении спроса на безопасные активы

The price of gold on Wednesday shows a slight increase against the background of increasing demand for safer assets in connection with the uncertain outcome of OPEC meeting which will take place later in Vienna, according to the auction.

As of 09.19 GMT the price of February gold futures on the new York Comex grew by 0.30 dollar, or 0.03%, to 1191,10 dollars per Troy ounce. The cost of the March futures for silver fell by 0.06% to 16.73 USD per ounce.

On Wednesday in Vienna will host the official meeting of OPEC, which the organization can finally resolve the issue of restrictions on its level of oil production. In late September, the cartel’s informal meeting in Algeria agreed on a restriction of output in the range of 32.5-33 million barrels of oil per day, but on specific limits for each of the countries of the organization while there is no agreement.

The uncertainty over the ability of OPEC countries to reach a final agreement still remains. On Tuesday the Agency Bloomberg with reference to sources reported that before the official OPEC meeting on Wednesday will be re-conducted informal negotiations between heads of delegations. On this background investors in the markets are afraid to make risky steps and prefer more safe assets, which traditionally include gold.

At the same time, the rising cost of gold limits the appreciation of the us currency, which makes the purchase of the precious metal more expensive for holders of other currencies. The dollar index (dollar to a basket of six currencies of countries — major U.S. trading partners) increased 0.15% to 101.14 points.