Gold Prices Fall On Steady Dollar

On Tuesday, gold prices fell as the dollar held steady ahead of PPI and CPI data on Wednesday.

For June delivery, gold futures on the Comex division of the New York Mercantile Exchange was down $2.3, or 0.2%, to $1,311.80 a troy ounce by 12:30AM ET (04:30 GMT).

The measure of the greenback strength against a basket of six major currencies, which is U.S. dollar index, rose 0.05% to 92.66. The greenback climbed to its highest level this year at 92.82 overnight.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – a gain in the dollar makes gold more expensive for holders of foreign currency and thus decreases demand for the precious metal.

In other precious metal trade, platinum futures slipped 0.18% to $910.40 an ounce, and silver futures fell 0.12% to $16.475 a troy ounce.

Events to look out for the greenback’s movement this week, include U.S. President Trump’s decision on whether to withdraw from the Iran deal later in the day.

U.S. withdrawal would mean unclear geopolitical developments in the Middle East that can weigh down the dollar. The U.S. is also due to release its PPI and CPI data on Wednesday and Thursday respectively./investing.com

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