Gold prices slipped on Thursday as stronger dollar gained on the back of strong economic data from the United States. Gold prices also pressured by technical selling after repeatedly failing to breach $1,300 this week.
Spot gold was down 0.4% at $1,291.47 an ounce at 1301 GMT and U.S. gold futures slipped 0.5% to $1,291.70.
Further pressure to bullion was added as the dollar index rose after data showed U.S. homebuilding increased more than expected in April. Unemployment benefits fell more than expected last week, pointing to sustained labour market strength that should underpin the economy.
Among other metals, silver was down 0.4 % at $14.74 an ounce while platinum fell 0.2% to $843.65.
START TRADINGForex – Stronger Dollar weighs on Gold
Investors focused on trade war tensions and remain nervous about a new trade war and how it may affect the global economy. The euro was hurt by concerns about this weekend’s European parliamentary elections. Criticisms of EU policy by Italian deputy Prime Minister Salvini has also made investors nervous ahead of elections in the region.
The U.S. dollar rose to its highest levels in a week against a basket of currencies on Thursday. The dollar has benefited as a safe-haven currency even as the United States and China are locked in a trade dispute.
The Australian dollar weakened after data showed that the country’s unemployment rate rose to its highest in eight months. This cemented views its central bank may be forced to lower borrowing costs soon to stimulate the economy.
The euro gained in volatile trade as the threat of automotive tariffs were pushed back. The euro was boosted on Wednesday by reports that U.S. President Donald Trump is expected to delay a decision on imposing tariffs on imported cars.
Sterling was down for the ninth straight session, touching a three-month low of $1.2821. Against the euro slipped 0.13% to 87.4 pence, the lowest since February 19. May’s failure to reach a compromise on the Brexit deal with Labour has also seen implied sterling volatility tick higher. The British currency is also being undermined by the global risk-off mood
PLEASE NOTE The information above is not investment advice.
Sources: Reuters, Investing, CNN money