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Friday Dec 13, 2024
Friday, 5 January 2018 00:00 - - {{hitsCtrl.values.hits}}
Reuters: Gold prices fell on Thursday after hitting a 3-1/2-month high the session before, pulled down as investors took profits and as the U.S. dollar firmed.
Spot gold was down 0.3% at $1,308.82 an ounce at 0712 GMT. US gold futures dropped 0.6% to $1,310 an ounce.
Spot gold marked its highest since Sept. 15 at $1,321.33 on Wednesday, but then dropped as the dollar recovered from over 3-month lows. It fell further after minutes from the Federal Reserve’s December policy bolstered expectations for more US interest rate hikes.
Gold, which had rallied $85 from nearly 5-month lows hit in mid-December, posted its first day of losses in nearly three weeks on Wednesday.
The dollar was firm on Thursday in the wake of upbeat US data.
US factory activity increased more than expected in December, boosted by a surge in new orders growth, in a further sign of strong economic momentum at the end of 2017.
Minutes from the Fed’s Dec. 12-13 meeting were seen as more hawkish than anticipated, indicating the central bank is still poised to raise interest rates several times this year.
The minutes suggested that the central bank would continue to pursue a gradual approach in raising rates but could pick up the pace if inflation accelerates.
Gold is highly sensitive to rising US interest rates as they increase the opportunity cost of holding non-yielding bullion, while boosting the dollar, in which it is priced.
Spot silver fell 0.6% to $17 an ounce, after hitting a six-week high on Wednesday at $17.24.
Spot platinum was down over 1% at $943 an ounce.
Spot palladium rose 0.4% to $1,086.95. It touched an all-time high on Tuesday at $1,096.50.
