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Gold Prices Hit 5-Month Lows on Stronger Dollar

Gold prices continue to drop as U.S. dollar strengthens

Investing.com - Gold prices continued to decline and hit a five-month lows on Thursday, as the release of upbeat U.S. jobless claims data and hopes a major tax overhaul will be passed before Christmas lent broad support to the greenback.

Comex gold futures was down $9.90 or about 0.77% at $1,256.20 a troy ounce by 08:45 a.m. ET (12:45 GMT), the lowest since July.

The U.S. dollar was boosted after data on Thursday showed that U.S. jobless claims declined last week for third consecutive week.

The greenback had already strengthened after U.S. Senate Republicans agreed to talks with the House of Representatives on a major tax reform bill on Wednesday, signaling that lawmakers could agree on a final bill ahead of a self-imposed December 22 deadline.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.17% at a two-week high of 93.68.

Investors seemed to put aside potential geopolitcal tensions following President Donald Trump decided to recognize Jerusalem as Israel's capital and to move the U.S. embassy there.

Elsewhere on the Comex, silver futures were down 0.72% at $15.84 a troy ounce.

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