Investing.com – Gold prices were lower on Friday as the greenback recovered from a two-week low as inflation pressures eased.
Comex for December delivery fell 0.39% to $1,222.80 a troy ounce as of 8:58 AM ET (12:58 GMT), after recording its largest daily percentage gain on Thursday since June 2016 amid a selloff in equities.
Cooling inflation data and rate hike expectations lead to a rise in the greenback, which pressured gold.
Date on Thursday showed that consumer prices rose less than expected in September, but still pointed to a steady increase in inflation, keeping pressure on the Federal Reserve to stick to its plan for gradual interest rate hikes.
Rising interest rates are likely remain a concern for gold prices. Interest rate increases and higher U.S. bond yields dampen appeal for gold, while boosting the dollar.
The precious metal 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.
The , which measures the greenback’s strength against a basket of six major currencies, increased 0.23% to 95.53.
Other metals were mixed on the Comex, with rising 0.58% to $14.690 a troy ounce. Among other precious metals, platinum decreased 0.28% to $844.20 while palladium inched up 0.07% to $1,075.90 an ounce. futures rose 0.36% to $2.813 a pound.
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Source: Investing.com
