2 weeks ago
Commodities

Gold Prices Down on Firmer Dollar

Investing.com – Gold prices were modestly lower in mid-morning trading in Asia on Thursday, still hovering around a one-month low. Gold

Investing.com – Gold prices were modestly lower in mid-morning trading in Asia on Thursday, still hovering around a one-month low.

Gold futures for April delivery on the Comex division of the New York Mercantile Exchange were down 0.03% to $1,287.15 a troy ounce by 10:34 PM ET (3:34 AM GMT) on Thursday morning.

Gold prices climbed to a peak of around $1,349 on Feb. 20 but have been on a downward trajectory since then and lingering at below $1,290 this week.

“After the massive sell-off (in gold) it is not surprising to see the prices stabilize given the cautious tone on the equity market especially today,” Eugen Weinberg, an analyst at Commerzbank (DE:CBKG), told Reuters.

Stocks fell overnight in the U.S. The Dow Jones Industrial Average dropped 0.52%, the S&P 500 fell 0.65%, and Nasdaq lost 0.93%.

The U.S. dollar, on the other hand, edged up. The U.S. Dollar Index that tracks the greenback against a basket of six major currencies continued to rise, up 0.03% to 96.830 on Thursday morning.

The yellow metal was set back by a firmer dollar, which makes dollar-denominated assets such as gold more expensive for foreign buyers.

Meanwhile, investors are awaiting further cues on the outlook of the global economy. The U.S. and China, the world’s two biggest economies, have yet to solve their trade spats.

Bloomberg reported on Wednesday that U.S. President Donald Trump is pushing for U.S. negotiators to strike a deal soon.