Gold Prices Hit 2-Week Low as Dollar Gains

Investing.com – Gold prices hit a more-than-two week low on Monday as dollar strength continued to put pressure on the precious metal.

On the Comex division of the New York Mercantile Exchange, for December delivery lost $2.94, or about 0.2%, to $1.277.56 a troy ounce by 4:16AM ET (8:16GMT).

That was just off an intraday low of $1,275.58 touched earlier in the session, its lowest level since October 6.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, rose 0.19% at 93.75 by 4:17AM ET (8:17GMT).

Gold is sensitive to a stronger dollar as the gains in the greenback made the precious metal more expensive for holders of foreign currency.

The dollar has found support as were boosted last week after the Senate approved a budget measure that will allow Republicans to pursue tax cuts without Democratic support.

The greenback ended last week up 0.69%, its fifth weekly increase in six weeks. Investors expect a fiscal boost to push up inflation, which in turn to add pressure on the U.S. Federal Reserve to , known as the “Trumpflation” trade.

Elsewhere in metals trading, dropped 0.50% at $16.993 a troy ounce.

fell 0.62% at $921.05 a troy ounce, while lost 0.44% to $965.60 a troy ounce as both metals hit one-week lows overnight.

To the upside, rose 0.24% to $3.173 a pound after Chinese authorities reaffirmed that the country’s economy was on track to achieve the official growth target even as its housing market slows.

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