Gold Prices Slip as Dollar Rebounds Following Plunge on Wall Street
Published Dec 05, 2018 01:25AM ET
Investing.com - Gold prices slipped on Wednesday in Asia as the dollar rebounded following a plunge on Wall Street overnight.
Gold futures for February delivery on the Comex division of the New York Mercantile Exchange traded 0.5% lower at $1,240.20 a troy ounce by 1:24 AM ET (05:24 GMT).
The U.S. dollar index that tracks the greenback against a basket of other currencies edged up 0.2% to 97.072. The safe-haven dollar gained after U.S. stocks slumped over 3% overnight.
The plunge in U.S. stocks came after top White House economic adviser Larry Kudlow backtracked from U.S. President Donald Trump’s announcement that Beijing had agreed to reduce tariffs on U.S.-made cars.
“It hasn’t been signed and sealed and delivered yet,” Kudlow said on Fox News Tuesday.
The dollar rose to the highest levels of the year in early November boosted by expectations for a faster pace of rate hikes by the Federal Reserve as the U.S. economy remained robust.
But the U.S. currency has come under pressure since comments by Federal Reserve Chairman Jerome Powell last week were interpreted by markets as an indication that the central bank could slow its program of rate hikes.
The Fed is widely expected to raise rates at its upcoming Dec. 18-19 meeting and has indicated that it could raise rates three times in 2019, but markets are currently pricing in just one rate hike next year.
Gold prices remained near-five-month highs as the greenback struggled in recent weeks.
Get The News You Want
Written By: Investing.com
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.