Gold Prices Fall as Stronger Dollar Weighs

Investing.com – Gold prices fell on Thursday, pulling away from the two-month highs hit in the previous session as the stronger dollar weighed and fears over escalating tensions in Syria cooled, but remained on investors’ minds.

for June delivery on the Comex division of the New York Mercantile Exchange were down $9.5 or 0.68% to $1,350.50 a troy ounce by 05:28 AM ET (09:28 AM GMT).

The , which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.28% to 89.47. A stronger dollar makes the dollar-denominated metal more expensive for holders of other currencies.

Prices of the precious metal hit a two month high of $1,369.10 on Wednesday, propelled higher by geopolitical tensions.

After a Russian diplomat said his country’s forces would shoot down U.S. missiles launched at Syria, U.S. President Donald Trump warned Russia to for imminent military action in response to an alleged chemical attack over the weekend.

Investors seek out gold as a store of value during times of market turmoil and political tensions.

Rising geopolitical tensions pulled focus away from fears over a , which had gripped global financial markets in recent weeks.

The dollar found support after Wednesday’s minutes of the showed that officials believe that the economy will continue to firm and that inflation will rise towards their 2% target in the coming months.

Some investors believed the minutes bolstered the case for a faster pace of monetary tightening by the Fed, a potentially bearish development for gold, which struggles to compete with yield-bearing assets when rates rise.

In other precious metal trade, fell 1.09% to $16.585 a troy ounce, while shed 0.32% to trade at $931.30.

Among base metals, were down 2.05% to $3.054 a pound.

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.