Yahoo Finance Gold Prices Under Pressure as Dollar Edges Higher
Investing.com – Gold prices fell on Tuesday following a sharp rise in the dollar on better-than-expected economic data and growing speculation that the next head of the Federal Reserve will favour a more aggressive stance on monetary policy.
Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell $15.34, or 1.18%, to $1,287.65 a troy ounce.
Gold prices continued to fall below a key $1,300 level after the dollar spiked on signs that the U.S. economy is on track for a solid quarter of economic growth.
U.S. import prices for September recorded their biggest increase in more than a year rising 0.7% for month, the Labor Department said Tuesday. That beat expectations for a 0.5% rise.
U.S. industrial output rose 0.3% in September as construction and utilities production recovered following the impact of Hurricanes Harvey and Irma last month, the Federal Reserve said on Tuesday. Manufacturing production rose 0.1% in September.
Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.
Also weighing on gold prices was a report suggesting that President Donald Trump favoured Stanford economist John Taylor as the next leader of the Federal Reserve. Taylor is regarded as one of the more hawkish candidates under consideration.
In other metals trading, silver futures fell 1.91% to $17.04 while platinum futures fell 0.62% to $936.30.
Natural gas rose by 0.54% to $2.96, while Copper traded at $3.2, down 1.30%.
Copper prices have retreated after hitting a three-year on Monday after data showed China’s economy continued to improve. China is the largest copper consumer, accounting for nearly 45% of the global demand.
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