Dollar resurgence sends gold below key level
Several factors that boosted the metal earlier in January now seem to be having no effect, says an INTL FCstone analyst
Bengaluru — Gold prices edged lower on Tuesday, hovering near three-week lows touched in the previous session, as a firmer dollar made bullion more expensive for buyers using other currencies. Spot gold was down 0.2% at $1,277.24/oz by 3.13 GMT, after touching its lowest since December 28 at $1,276.31 on Monday. US gold futures fell 0.4% to $1,277.20/oz. The dollar hovered near two-week highs against its peers on Tuesday. “Gold has become a victim of a stronger greenback in the short term. A weaker euro and concerns around growth in Europe have given a leg up to the dollar, pushing gold prices down below the key level of $1,280,” said Kyle Rodda, market analyst with IG Markets. “We haven’t seen much of data coming out of US recently due to the government shutdown. If we see more weaker data that could cause bond yields to fall and support gold. Also, technically, we need to see gold push above the challenge of $1,300 level.” The dollar’s rise weighed on gold, which has climbed more ...
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