Gold edged lower on Tuesday morning in London while sustained dollar strengths continues to weigh.
– The spot gold price was last at $1,211.20/1,211.40 per ounce, down $1.50 on Monday’s close. Trade has ranged narrowly from $1,208.50 to $1,214.50 so far.
– The metal fell to a three-and-a-half-month low of $1,199.90 on Monday after the US dollar index climbed to a fresh two-month high of 95.96. The dollar has been strengthening following a hawkish FOMC April meeting.
– This was echoed by Fed chair Janet Yellen on Friday – she said she expects a rebound from in US growth from below one percent in the first quarter. If so, an increase in interest rates in the coming months “would be appropriate”, Yellen said in an interview.
– With the Fed decision still very much data-dependent, US economic numbers released this week will be closely watched. The US core PCE price index, CB consumer confidence, personal spending, personal income, the S&P/CS composite-20 HPI and the Chicago PMI are due later on Tuesday, with the ISM manufacturing PMI to follow on Wednesday and the blockbuster jobs report on Friday.
– In the other precious metals, silver was last 10 cents lower at $16.085/16.105. Platinum at $975/980 was up $5 and palladium climbed $9 to $542/547.
(Additional reporting by Vivian Teo, editing by Mark Shaw)
The post Gold edges lower, dollar strengths weighs appeared first on The Bullion Desk.
Read More
Source: Bullion Desk News
