Get 40% Off
🤯 This Tech Portfolio is up 29% YTD! Join Now to Get April’s Top PicksGet The Picks – Just 99 USD

Gold Prices Move Off Lows as Dollar Comes Under Pressure

Published 10/25/2017, 01:41 PM
Updated 10/25/2017, 01:41 PM
© Reuters.

© Reuters.

Investing.com – Gold prices were roughly unchanged on Wednesday as the dollar came under pressure despite bullish economic reports pointing to underlying strength in the U.S. economy.

Gold futures for December delivery on the Comex division of the New York Mercantile Exchange fell $0.34, or 0.03%, to $1,277.95 a troy ounce.

Bullish durable goods orders and housing data failed to spark a recovery in the dollar, lifting gold prices off session lows as the precious metal attempted to snap a three-day losing streak.

The Commerce Department said on Wednesday non-defense capital goods orders excluding aircraft, a closely watched proxy for business spending plans, rose 1.3% last month, beating forecast of a 1% increase.

In a separate report, the Commerce Department showed existing home sales increased 18.9% in September from the previous month to a seasonally adjusted annual rate of 667,000 units. Economists were expecting a 0.9% decline to 555,000 homes.

Despite the recovery from session lows, gold prices remained under pressure amid reports that Stanford University economist John Taylor – an economist with a less dovish outlook than Fed chair Janet Yellen – was leading the race to notch the Fed’s top post.

Gold is sensitive to moves higher in both bond yields and the U.S. dollar – A stronger dollar makes gold more expensive for holders of foreign currency while a rise in U.S. rates, lift the opportunity cost of holding non-yielding assets such as bullion.

In other metals trading, silver futures fell 0.18% to $16.96 while platinum futures lost 0.12% to $924.40

Natural gas fell by 1.51% to $2.93, while copper traded at $3.18, down 0.47%.

Latest comments

Risk Disclosure: 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.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.