Breaking News

Gold Prices Drop as U.S. Dollar Impedes Gains

CommoditiesFeb 11, 2019 10:09AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. - Gold prices dropped on Monday as investors awaited news of progress in trade talks between Washington and Beijing, while the dollar's strength continued to make the metal more expensive for non-dollar-based investors.

At 10:04 AM ET (15:04 GMT), gold futures for April delivery on the Comex division of the New York Mercantile Exchange lost $8.65, or 0.66%, to $1,309.85 a troy ounce.

Meanwhile, the U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, gained 0.33% to 96.74, a new high for the year.

While a stronger greenback is generally considered a negative for gold as it makes the dollar-denominated metal more expensive for holders of foreign currencies, the precious metal has only fallen about 0.9% since Jan. 31, compared to the 1.5% rise in the dollar index.

Benjamin Lu, an analyst with Singapore-based Phillip Futures, noted that the strong dollar was a short-term obstacle for gold.

“But over a long-term perspective, we are quite bullish. Global growth worries, absence of positive signs in U.S-China trade negotiations and reduction in the euro-zone growth forecasts have laid a strong foundation for gold,” he said.

Along similar lines, analyst Pinchas Cohen suggested that the current drop in gold could represent a buying opportunity from the point of view of technical analysis.

Cohen also argued that the recent dollar rally has been due to the currency’s “off-and-on safe haven status” and did not reflect increased faith in economic growth.

High-level officials gather in Beijing this week, aiming to hammer out an agreement over trade, U.S. President Donald Trump warned last week that he had no plans to meet with Chinese President Xi Jinping before a new raft of U.S. import tariffs on Chinese goods comes into effect on March 1. Those comments have been dampening hopes for a breakthrough.

Traders will also be monitoring U.S. economic data for its impact on the dollar and precious metal this week. Figures on consumer prices are due on Wednesday, while December retail sales figures and data on producer prices are set to be released on Thursday.

In other metals trading, silver futures fell 0.67% at $15.703 a troy ounce by 11:06 AM ET (15:06 GMT).

Palladium futures slumped 1.23% to $1,354.35 an ounce, while sister metal platinum traded down 1.36% at $791.60.

In base metals, copper declined 0.76% to $2.789 a pound.

-- Reuters contributed to this report.

Gold Prices Drop as U.S. Dollar Impedes Gains

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with users, share your perspective and ask questions of authors and each other. However, in order to maintain the high level of discourse we’ve all come to value and expect, please keep the following criteria in mind: 

  • Enrich the conversation
  • Stay focused and on track. Only post material that’s relevant to the topic being discussed.
  • Be respectful. Even negative opinions can be framed positively and diplomatically.
  •  Use standard writing style. Include punctuation and upper and lower cases.
  • NOTE: Spam and/or promotional messages and links within a comment will be removed
  • Avoid profanity, slander or personal attacks directed at an author or another user.
  • Don’t Monopolize the Conversation. We appreciate passion and conviction, but we also believe strongly in giving everyone a chance to air their thoughts. Therefore, in addition to civil interaction, we expect commenters to offer their opinions succinctly and thoughtfully, but not so repeatedly that others are annoyed or offended. If we receive complaints about individuals who take over a thread or forum, we reserve the right to ban them from the site, without recourse.
  • Only English comments will be allowed.

Perpetrators of spam or abuse will be deleted from the site and prohibited from future registration at’s discretion.

Write your thoughts here
Are you sure you want to delete this chart?
Post also to:
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Thanks for your comment. Please note that all comments are pending until approved by our moderators. It may therefore take some time before it appears on our website.
Are you sure you want to delete this chart?
Replace the attached chart with a new chart ?
Your ability to comment is currently suspended due to negative user reports. Your status will be reviewed by our moderators.
Please wait a minute before you try to comment again.
Add Chart to Comment
Confirm Block

Are you sure you want to block %USER_NAME%?

By doing so, you and %USER_NAME% will not be able to see any of each other's's posts.

%USER_NAME% was successfully added to your Block List

Since you’ve just unblocked this person, you must wait 48 hours before renewing the block.

Report this comment

I feel that this comment is:

Comment flagged

Thank You!

Your report has been sent to our moderators for review
Disclaimer: Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. All CFDs (stocks, indexes, futures) and Forex prices are not provided by exchanges but rather by market makers, and so prices may not be accurate and may differ from the actual market price, meaning prices are indicative and not appropriate for trading purposes. Therefore Fusion Media doesn`t bear any responsibility for any trading losses you might incur as a result of using this data.

Fusion Media or anyone involved with Fusion Media will not accept any liability for loss or damage as a result of reliance on the information including data, quotes, charts and buy/sell signals contained within this website. Please be fully informed regarding the risks and costs associated with trading the financial markets, it is one of the riskiest investment forms possible.
Continue with Google
Sign up with Email