Categories: General Market Commentary / Precious Metals
Topics: General Market Commentary / General Precious Metals

Dollar knocks gold price below $1,200

Dollar knocks gold price below $1,200

Gold prices hit a nine-month low Wednesday as a resilient dollar extended its rally thanks to strong US economic data that further made a Federal Reserve interest-rate increase next month as certain as death and taxes.

The precious metal has lost about 10% from a peak it reached in the aftermath of the US election two weeks ago.
The precious metal fell 1.5% to $1,193.91 an ounce by 9:06 am ET, the first time since February that gold drops below the psychologically important $1,200 mark.

Futures, in turn, slid 1.5% to $1,192.80. The have dropped more than 6% since the US presidential election, and holdings in exchange-traded funds backed by the metal are heading for the biggest monthly decline in almost three years.

US durable goods orders rebounded in October and jobless claims, though off a 43-year low, remained below a level consistent with a tightening labour market. That pushed the dollar up into a fresh 13-1/2 year high.

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