Gold Hovers Near 2-Month Low, Stronger Dollar Weigh
ICN.com | Aug 22, 2014 05:46AM ET
Gold hear near a 2-month on Friday, extending losses to a fifth session as the dollar strengthened on strong data and indications from the U.S. Federal Reserve it could raise interest rates sooner than expected.
Spot gold prices tumbled on Thursday, edged slightly up, adding 0.40 percent or 5.09 points to trade at $1,279.91 compared with an opening level of $1,277.36. Prices so far hit intraday high at $1,280.81 and low at $1,276.28.
Data on Thursday showed U.S. home re-sales raced to a 10-month high in July and the number of Americans filing new claims for jobless benefits fell last week, on a clear sign of strength in the economy.
Gold`s appeal as a safe-haven has been recently hurt by solid data especially in the labor market. Investors fear data would prompt the Fed to soon raise interest rates.
Higher rates would hurt non-interest bearing assets such as gold.
In other markets:
- Spot Silver climbed 0.64% to trade at $19.54
- Spot Platinum gained 0.28% to $1,423.75
- Spot Palladium added 0.27% to trade at $882.10
Markets are eyeing the annual gathering of central bankers in Jackson Hole, Wyoming later on Friday. Fed’s Chief Janet Yellen’s speech will be closely watch to see whether policymakers debated interest rates should be raised earlier given a surprisingly strong job market recovery.
The U.S. dollar traded just below 11-month highs against a basket of major currencies, with the index last seen trading at 82.12 as of 09:34 GMT+3.
Get The News You Want
Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.