Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Prices Fall On Strong Dollar, Rate Outlook

Published 21/06/2018, 03:13 pm
Updated 21/06/2018, 03:16 pm
© Reuters.  Gold prices fell on a stronger dollar on Thursday

© Reuters. Gold prices fell on a stronger dollar on Thursday

Investing.com – Gold prices fell on a stronger dollar on Thursday, hovering close to a six-month low as the U.S. Federal Reserve Chair confirmed an outlook for higher interest rates in the United States.

Gold futures for August delivery on the Comex division of the New York Mercantile Exchange fell by $7.1 or 0.56%, to $1,267.40 a troy ounce by 1:13AM ET (05:13 GMT).  

The U.S. dollar index that monitors the value of the greenback relative to a basket of six currencies stood at 94.92, up by 0.15%.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – A rise in the dollar makes gold more expensive for holders of foreign currency and thus, reduces demand for the precious metal. 

Meanwhile, long-term Treasury yields also recovered from three-week lows on Wednesday, supporting the dollar’s rise on Thursday. 

Federal Reserve Chairman Jerome Powell said on Wednesday that the U.S. central bank should continue with a gradual pace of rate increases, which also supported yields. Powell said during a meeting of central bank chiefs in Portugal that trade tensions could cause damage to the global economy. 

U.S. President Donald Trump said on Thursday he expects to announce new trade deals with certain unspecified countries soon.

On Monday, he ordered the U.S. Trade Representative to identify $200 billion worth of China goods for additional tariffs. The news triggered a sell-off in equities and was cited as a supportive for gold prices.

In other precious metal trade, silver futures fell 0.52% to $16.225 a troy ounce, while platinum futures fell 0.84% at $863.40 an ounce. 

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.