Investing.com – Gold prices remained on track to post a fifth daily slump in a row as traders continued to shun the yellow metal despite the dollar retreating on data showing first-quarter US economic slowed by more than expected.
for August delivery on the Comex division of the New York Mercantile Exchange fell by $6.80 or 0.53%, to $1,249.40 a troy ounce.
The U.S. dollar’s two-day rally came under threat after slowed to a 2% annual rate in the January to March period, missing economists’ forecast of 2.2%.
Yet, the yellow metal continued to trickle lower, to fresh 6-months lows, on expectations that any dollar weakness would be short lived, as the Federal Reserve is forecast to raise rates twice more this year, to a total of four rate hikes, amid worries about the U.S. economy overheating.
Atlantic Federal Reserve President Raphael Bostic said Thursday the Fed was worried about the U.S. economy overheating but acknowledged that U.S. economic expansion has been steady.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding gold as it pays no interest.
Gold prices are down more than 7% since the turn of the year, but market participants remain positive on the yellow metal, for its safe-haven appeal in the wake of U.S.-China trade tensions, Bank of Montreal said.
In other precious metal trade, fell 0.68% to $16.14 a troy ounce, while dropped 0.95% to $853.80 an ounce.
fell 1.25% to $2.970.
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Source: Investing.com
