Gold heads down towards multi-month lows on a stronger dollar
SPDR holdings decline to their weakest since August, with speculators raising net longs in gold in the week to July 3
London — Gold headed lower on Tuesday, weighed down by a stronger dollar, and may re-test a seven-month low after a failed attempt to break higher in the previous session. Spot gold was down 0.3% at $1,253.60 an ounce by 10.30am GMT, after retreating from its highest since June 26 at $1,265.87 in the previous session. US gold futures for August delivery were 0.4% lower at $1,254 an ounce. "If this dollar strength continues, we could see another test of $1,240, the lows from last week and mid-December, a crucial technical level," said Carsten Fritsch, commodity analyst at Commerzbank in Frankfurt. Bullion has been in a downtrend since touching $1,365.23 on April 11, the strongest in nearly three months. The dollar’s index against a basket of six major currencies was up 0.2% at 94.263 after dropping to its lowest since mid-June on Monday. A stronger dollar makes greenback-denominated gold more expensive for holders of other currencies. Investors were also on the sidelines awaiting dev...
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