3069 Views

Gold Prices Hit Day’s Lows as Dollar Rallies to 2018 Highs

© Reuters.  Gold hits day’s lows as dollar rallies to 2018 highs© Reuters. Gold hits day’s lows as dollar rallies to 2018 highs

Investing.com – Gold prices fell to the day’s lows on Tuesday as the dollar rallied to fresh 2018 highs, weighing on demand for the yellow metal.

Gold futures for June delivery on the Comex division of the New York Mercantile Exchange fell $5.50 or 0.42% to $1,308.60 a troy ounce by 10:45 AM ET (14:45 GMT).

Prices fell to their lowest levels in two months last week and posted a third consecutive weekly decline.

The U.S. dollar index, which measures the greenback’s strength against a basket of six major currencies, was up 0.53% to 93.10, its highest level of the year.

A stronger dollar tends to hit demand for gold and other dollar-denominated commodities, making them more expensive for overseas buyers.

Demand for the dollar was underpinned as investors remained cautious ahead of an announcement by U.S. President Donald Trump later in the day about the future of an international nuclear agreement with Iran, which he has repeatedly threatened to withdraw from.

The U.S. currency received an additional boost after Federal Reserve Chairman Jerome Powell warned in a speech in Zurich earlier Tuesday that markets should not be surprised by further policy tightening.

Rising U.S. Treasury yields and broadly solid economic data have boosted the dollar in recent weeks, underlining expectations for a steady pace of interest rate increases by the Fed this year.

The central bank has projected two more increases for the year, but some investors expect three more. Expectations for a faster pace of rate hikes tend to be bearish for gold, which struggles to compete with yield bearing assets when interest rates rise.

In other precious metal trade, silver futures were down 0.67% to $16.38, while platinum futures slid 0.39% to $910.10.

Among base metals, copper futures shed 1.2% to trade at $3.042 a pound.

sponsoredArticle = ‘div-gpt-ad-1466339494851-0’;

Get Free Email Updates!

Signup now and receive an email once I publish new content.

I will never give away, trade or sell your email address. You can unsubscribe at any time.

You may be interested

Bank of England’s Broadbent apologizes for ‘menopausal’ remark
Economy
1768 views
Economy
1768 views

Bank of England’s Broadbent apologizes for ‘menopausal’ remark

admin - May 16, 2018

LONDON - Bank of England Deputy Governor Ben Broadbent apologizes on Wednesday for describing Britain’s economy as going through a…

Garrett Camp, Uber Founder Shares His Thoughts On The Future and How To Take Advantage of It
Economy
75 views
Economy
75 views

Garrett Camp, Uber Founder Shares His Thoughts On The Future and How To Take Advantage of It

admin - May 15, 2018

Garrett Camp is an impressive individual with an impressive track record, he has amassed a huge fortune in his young…

Why Banks Can’t Be Trusted Anymore
Politics
86 views
Politics
86 views

Why Banks Can’t Be Trusted Anymore

admin - May 15, 2018

Our finance system is rigged in favour of a crisis-ridden City to reap profits for individuals. It’s time these institutions…