Stronger dollar takes its toll on gold
The metal edges lower as investors await outcome of European Central Bank meeting for clues on the health of the economy
Bengaluru — Gold edged lower on Thursday, weighed down by a stronger dollar and an uptick in equities, while investors awaited the conclusion of the European Central Bank (ECB) policy meeting later in the day for further cues on the health of the economy. Spot gold was down 0.2% at $1,278.97/oz at 11.18am GMT. US gold futures were down 0.4% at $1,278.20. “I think the market doesn’t believe, at least yet, that there’s a case for gold to go above $1,300.… The dollar is still relatively strong,” said Philip Newman, director at Metals Focus. Gold still faces short-term headwinds, Newman said, adding that the metal is only one of the beneficiaries of renewed interest for safe havens from market volatility. A stronger dollar, another refuge for investors, makes gold more expensive for holders of other currencies. The dollar index was up 0.3% against a basket of currencies on Thursday. Gold prices have gained more than 10% since touching one-and-a-half-year lows in mid-August, mainly becau...
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.