Stronger Dollar Dents Gold
December 12 2017 - 1:39PM
Dow Jones News
By Ira Iosebashvili
Gold prices fell to their weakest level in nearly five months
Tuesday, as the dollar rose.
Gold for February delivery was recently down 0.6% to $1,240 a
troy ounce on the Comex division of the New York Mercantile
Exchange, the lowest level since mid-July.
The Wall Street Journal Dollar Index rose 0.2% to 87.46,
pressuring gold, which is priced in the U.S. currency and becomes
less affordable to overseas buyers when the dollar appreciates.
Some investors are also getting out of the metal before the
Federal Reserve concludes its monetary policy meeting Wednesday.
Some analysts believe the economy could get a boost if Republican
lawmakers succeed in passing sweeping tax cuts in coming weeks,
pushing the Fed to raise rates at a faster pace next year.
Higher rates tend to weigh on gold, which struggles to compete
with yield-bearing assets when borrowing costs rise.
At the same time, "the absence of geopolitical news and the
continuous momentum of the equity and crypto-currency market have
pushed enthusiasm for gold to the sidelines," analysts at Kitco
Metals said in a note to clients.
In base metals, copper for March delivery was up 0.2% at $3.0185
a pound.
Write to Ira Iosebashvili at ira.iosebashvili@wsj.com
(END) Dow Jones Newswires
December 12, 2017 13:24 ET (18:24 GMT)
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