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Sunday, September 24, 2023

Gold Prices Edge Lower as Dollar Remains Firm

Gold Prices Edge Lower as Dollar Remains Firm© Reuters.

Investing.com – Gold prices hovered above session lows as an ongoing dollar rally kept a lid on demand for the precious metal.

for June delivery on the Comex division of the New York Mercantile Exchange fell by $4.30 or 0.33%, to $1,318.50 a troy ounce. The precious metal fell to an intraday low of $1,316 a troy ounce.

The dollar rallied to a nearly four-month high amid a slump in the euro, pressuring the yellow metal to a more than one-month low. Losses, however, were limited somewhat as the retreated from more than four-year highs.

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 gold as it pays no interest.

The weakness in gold prices comes a day before the U.S. is slated to reveal first-quarter GDP and inflation data, which could set a new path for the yellow metal.

Economists forecast first-quarter GDP rose 2%, down from 2.9% seen in the fourth quarter, while the GDP price index is expected to show a 2.2% reading.

Gold prices remained on track to post a second-straight weekly loss as geopolitical uncertainty – that had been supporting the precious metal – has largely abated following signs of progress toward peace talks on the Korean peninsula and improving U.S.-China relations.

In other precious metal trade, fell 0.25% to $16.46 a troy ounce, while fell 0.31% to $909.90 an ounce.

fell 0.59% to $3.12.

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Source: Investing.com

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