Investing.com – Gold was trading lower in Asia on Friday as the dollar rebounded.
for August delivery on the Comex division of the New York Mercantile Exchange were down $2.50 or 0.19%, to $1,300.50 a troy ounce at 12:16AM ET (04:16 GMT).
The dollar rebounded in morning trade in Asia Friday, although it was still hovering near three-week lows after sliding in the past few days. The , which tracks the greenback against a basket of six major currencies, added 0.03% to 93.46.
Supporting the dollar and pressuring gold are expectations of another hike in interest rates when the U.S. Federal Reserve meets next week. With solid economic news continuing to come out of the U.S., the Fed is in a position to take an aggressive stance to tighten monetary policy and stay ahead of inflation. The U.S. reported a string of bullish economic data last week including nonfarm payrolls and the unemployment rate for May, boosting investors’ confidence in the U.S. economy.
Higher interest rates generally weigh on gold, because they make it more expensive to hold non-yielding assets.
In other precious metal trade, shed 0.62% to $16.710 a troy ounce, platinum futures lost 0.11% to $899.9 an ounce and copper gained 0.06% to $3.265.
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Source: Investing.com
