Bengaluru — Gold fell on Wednesday in the face of technical resistance and positive economic data that boosted the expectation for further US interest rate increases in 2017, supporting the dollar and equities markets. "A resurgent US dollar, along with higher US yields and equities has taken the momentum out of the gold rally for now," said Jeffrey Halley, senior market analyst at Oanda. The metal was also under pressure after failing to break through its 200-day moving average at $1,260, Halley said, posting its second consecutive down day in Asia. Spot gold was down 0.3% at $1,248.32/oz at 3.25am GMT. US gold futures slipped 0.6% to $1,247.9. The dollar pulled away from four-and-a-half-month lows against a currency basket on Wednesday as solid data backed the expectation for more US interest rate increases in 2017. Reinforcing rate increase expectations, US consumer confidence index hit 125.6 in March, surpassing expectations for a reading of 114 and much higher than 116.1 in Feb...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.