Breaking News
Get Actionable Insights with InvestingPro+: Start 7 Day FREE Trial Register here
Investing Pro 0
Ad-Free Version. Upgrade your experience. Save up to 40% More details

Gold prices gain as dollar slides to 6-month lows

CommoditiesMay 16, 2017 08:44AM ET
Saved. See Saved Items.
This article has already been saved in your Saved Items
© Reuters. Gold rises as dollar slides to 6-month lows - Gold prices were higher in North American trade on Tuesday, trying for its fifth-straight winning session as the U.S. dollar slid to the lowest level since November amid signs of slowing economic activity in the U.S. and following another controversy from President Donald Trump.

Comex gold futures rose around $5.00, or about 0.4%, to $1,235.30 a troy ounce by 8:40AM ET (12:40GMT). Meanwhile, spot gold was at $1,235.40.

The yellow metal notched a fourth-straight winning session on Monday after rising to its highest since May 4 at $1,237.40, following the release of underwhelming U.S. manufacturing data.

Data on Tuesday showed that the number of housing starts and building permits issued in the U.S. unexpectedly declined in April.

The U.S. Commerce Department said that housing starts decreased by 2.6% from the month before to hit 1.172 million units last month. Analysts had expected April’s reading to rise 3.7% from the prior month’s initial reading of 1.203 million units.

Meanwhile, the number of building permits issued fell 2.5% to 1.229 million units last month from 1.260 million the month before.

The disappointing data is the latest in a string of weaker than expected U.S. economic reports which saw investors temper expectations for more rate hikes by the Federal Reserve.

Markets are pricing in around a 70% chance of a hike at the Fed's June meeting, according to’s Fed Rate Monitor Tool, down from more than 80% in previous week.

The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion.

A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, weakened for a fifth straight day, falling around 0.6% to 98.23 in New York morning trade.

It slid to an overnight low of 98.17, a level not seen since November 10, amid reports that President Donald Trump disclosed highly classified information to Russia's foreign minister about a planned Islamic State operation in a meeting last week.

The news added to concerns that Trump will be unable to successfully push through his economic stimulus program in the face of mounting controversies.

Also on the Comex, silver futures gained 15.9 cents, or about 1%, to $16.76 a troy ounce.

Elsewhere in metals trading, platinum tacked on 1.2% to $939.70, while palladium added 0.8% to $803.58 an ounce.

Industrial metals rallied on Monday after Chinese President Xi Jinping pledged $124 billion in fresh financing to support its “Belt and Road” infrastructure mega-program.

Gold prices gain as dollar slides to 6-month lows

Related Articles

Add a Comment

Comment Guidelines

We encourage you to use comments to engage with other 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, don’t trash it.

  •           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. Avoid profanity, slander or personal attacks directed at an author or another user. Racism, sexism and other forms of discrimination will not be tolerated.

  • Use standard writing style. Include punctuation and upper and lower cases. Comments that are written in all caps and contain excessive use of symbols will be removed.
  • NOTE: Spam and/or promotional messages and comments containing links will be removed. Phone numbers, email addresses, links to personal or business websites, Skype/Telegram/WhatsApp etc. addresses (including links to groups) will also be removed; self-promotional material or business-related solicitations or PR (ie, contact me for signals/advice etc.), and/or any other comment that contains personal contact specifcs or advertising will be removed as well. In addition, any of the above-mentioned violations may result in suspension of your account.
  • Doxxing. We do not allow any sharing of private or personal contact or other information about any individual or organization. This will result in immediate suspension of the commentor and his or her account.
  • Don’t monopolize the conversation. We appreciate passion and conviction, but we also strongly believe in giving everyone a chance to air their point of view. 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.
Comments (1)
erick deshawn clewis
erick deshawn clewis May 16, 2017 11:50AM ET
Saved. See Saved Items.
This comment has already been saved in your Saved Items
investing is not against America ?
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