16.5 C
New York
Thursday, October 21, 2021

Gold Prices Claw Back Losses Despite Dollar Strength

Gold Prices Claw Back Losses Despite Dollar Strength

Investing.com – Gold prices clawed back some of their losses shrugging off a move higher in the dollar and a surge in bond yields.

for June delivery on the Comex division of the New York Mercantile Exchange fell by $4.70, or 0.34%, to $1,348.90 a troy ounce.

Gold prices remained above their lows of $1,348.50 as traders continued to support the precious metal despite economic data pointing to inflationary pressures, spurring bond yields and the dollar higher.

The rose above 2.9% as traders bet that inflation and economic growth would remain firm in the wake of stronger Philly Fed data signalling a continued expansion in input prices.

The Philadelphia Fed said Thursday its rose to a reading of 23.2, a three-month high, from 20.8 in April.

Investors’ outlook on inflation was also bolstered by the Federal Reserve’s Beige Book report released Wednesday, suggesting that consumer inflation could be set on a path higher as rising input costs were expected to be passed onto consumers.

Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

Positive sentiment on gold prices seen last week has eased somewhat as safe-haven demand dropped after U.S. military action in Syria was less extensive than some had feared while U.S.-North Korea tensions calmed.

U.S. President Donald Trump said on Wednesday he hoped a summit with North Korean leader Kim Jong Un would be successful.

In other precious metal trade, rose 0.07% to $17.26 a troy ounce, while fell 0.68% to $939.40 an ounce.

fell 0.97% to $3.13.

Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.

Source: Investing.com

Related Articles

Stay Connected

10,827FansLike
12,893FollowersFollow
756FollowersFollow
- Advertisement -

Latest Articles

Popular Articles