Gold Prices Fall Below $1,200 to 1-Month Low

Investing.com – Gold prices fell below the $1,200 psychological support on Tuesday, dropping to a one-month low as dollar strength continued to put downward pressure on the precious metal.

At 5:23 AM ET (10:23 GMT), for December delivery on the Comex division of the New York Mercantile Exchange fell $4.00, or 0.33%, to $1,197.30 a troy ounce, it’s lowest level since Oct. 11.

Meanwhile, the U.S. , which tracks the greenback against a basket of six major currencies, was last at 97.61, within striking distance of Monday’s 16-month highs of 97.53.

A stronger greenback makes the dollar-denominated precious metal more expensive for holders of foreign currencies.

Demand for the dollar was underpinned after the Federal Reserve indicated last week that rates are likely to rise in December and again in early 2019, with the U.S. economy looking strong on almost every front.

Strong U.S. producer price index data on Friday also served as an endorsement for the Fed to tighten again at the end of year, placing pressure on gold which is a non-yielding asset.

There are no major data releases on Tuesday’s economic calendar, but traders will look for further clues on the Fed’s outlook through a series of appearances by policymakers.

At 10:00 AM ET (15:00 GMT), Fed governor and Minnesota Fed president will make separate appearances.

At 2:20 PM ET (19:20 GMT), Philadelphia Fed chief will speak at the Fintech and the New Financial Landscape conference, while San Francisco Fed president is scheduled to give a lecture to Boise State University at 5:00 PM ET (22:00 GMT).

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