Investing.com – Gold prices slipped lower on Monday, pulling away from a three-and-a-half week high as the U.S. dollar remained supported by Friday’s strong U.S. housing sector data.
Trading volumes were expected to remain limited as U.S. markets were closed on Monday in observance of Presidents’ Day.
Comex were down 0.37% at $1,351.1 a troy ounce by 02:10 a.m. ET (06:10 GMT), off Friday’s three-and-a-half week peak of $1,364.4.
The greenback strengthened after data on Friday showed that U.S. homebuilding in January and that building permits soared to their highest level since 2007.
The upbeat report overshadowed fresh concerns over the deficit in the U.S., which is projected to climb near $1 trillion in 2019 following the recent announcement of infrastructure spending and large corporate tax cuts.
The dollar was also supported after the U.S. Commerce Department reported on Wednesday that consumer prices rose more than expected in January by , sending U.S. bond yields higher.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 89.06.
Elsewhere on the Comex, were down % at $16.66 a troy ounce.
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Source: Investing.com
