Gold Prices Fall as U.S. Dollar Rallies

Investing.com – Gold prices were lower on Friday after the greenback rallied from an earlier loss.

Comex for December delivery decreased 0.51% to $1,202.00 a troy ounce as of 11:21 AM ET (15:21 GMT).

Disappointing data on Thursday and Friday increased concern that the Federal Reserve could ease its stance on monetary policy. U.S. retail sales barely registered any gains in August, while consumer prices rose less than expected.

Still, investors are expecting the Fed to raise rates at its policy meeting next week while .

Higher rates are a negative for gold as the precious metal, which does not pay interest, struggles to compete with yield-bearing assets when rates rise.

The , which measures the greenback’s strength against a basket of six major currencies, rose 0.28% to 94.79.

Gold usually falls as the dollar rises, as it is denominated in the U.S. currency and is sensitive to moves in the dollar. Bullion becomes more expensive for holders of other currencies when the dollar rises and cheaper when it falls.

Trade tensions remained, as talks over a revised North American Free Trade Agreement (NAFTA) with Canada also made little progress. The Minister of Foreign Affairs of Canada said she would continue talks until at least Monday. Meanwhile, trade talk efforts between the U.S. and China cooled after U.S. President Donald Trump tweeted that the country “was under no pressure to make a deal with China.”

Other metals were mostly down on the Comex, with falling 0.48% to $14.175 a troy ounce. Among other precious metals, inched down 0.17% to $801.90, while increased 0.66% to $9725.10 an ounce. futures lost 0.34% to $2.674 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.