Gold Prices Still Under Pressure as Dollar Rebounds

Investing.com – Gold prices remained lower on Wednesday, as the greenback regained some ground while traders continued to digest the recent rout in equities and the subsequent choppy movements in other markets.

Comex were down 0.28 at $1,325.90 a troy ounce by 08:10 a.m. ET (12:10 GMT), re-approaching the previous session’s three-week trough of $1,322.80.

Sentiment waned after global equity markets on Friday following the release of strong , which sparked concerns over rising inflation, sending bond yields sharply higher.

The index was particularly hit on Monday, when it recorded its worst daily point drop in history.

However, U.S. equities rebounded on Tuesday, leading to a downward turn in the greenback, which had benefited from Wall Street’s sharp decline.

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.26% at 89.74.

Gold is sensitive to moves in the dollar. A stronger dollar makes gold more expensive for holders of foreign currency.

Elsewhere on the Comex, were down 0.27% at $16.54 a troy ounce.

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