Yahoo Finance Gold Prices Still Under Pressure on Stronger Dollar
Investing.com - Gold prices remained under pressure on Tuesday, as U.S. dollar strength and lower demand for safe-haven assets continued to weigh on the precious metal.
Comex gold futures were down 1.08% at $1,341.6 a troy ounce by 08:00 a.m. ET (12:00 GMT), the lowest since February 14.
The greenback remained supported against other major currencies despite U.S. deficit worries. The U.S. deficit is projected projected to climb near $1 trillion in 2019 following the recent announcement of infrastructure spending and large corporate tax cuts.
The dollar has been pressured lower recently by expectations for a faster pace of monetary tightening outside the U.S., which would lessen the divergence between the Federal Reserve and other central banks.
Market participants were looking ahead to the minutes of the Fed's latest policy meeting, due on Wednesday, for potential indications on the pace of future rate hikes.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.51% at 89.53, the highest since February 14.
Elsewhere on the Comex, silver futures lost 1.30% to $16.49 a troy ounce.
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