Gold Prices Holds Steady, Close to 1-Week Highs
Investing.com - Gold prices held steady on Thursday, hovering close to one-week highs as the previous session's mixed U.S. data and political turmoil in Washington continued to pressure the dollar and support safe-haven demand.
Comex gold futures were little changed at $1,325.9 a troy ounce by 03:00 a.m. ET (07:00 GMT), just off the previous session's one-week peak of $1,330.5.
Sentiment on the greenback remained vulnerable after the U.S. Commerce Department reported on Wednesday that retail sales fell 0.1% in February, compared to expectations for a 0.3% rise.
However, a separate report showed that U.S. producer prices rose 0.2% in February, beating forecasts for an uptick of 0.1%.
Market participants were now looking ahead to U.S. manufacturing activity data in the New York and Philadelphia areas, as well as the weekly report on U.S. jobless claims for further indications on the strength of the economy.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was steady at 89.73.
Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.
Meanwhile, markets were still jittery after U.S. President Donald Trump on Tuesday fired Secretary of State Rex Tillerson, considered more moderate in his administration. Tillerson will be replaced by CIA Director Mike Pompeo.
Fears of a potential global trade war were also reignited after Trump announced plans to impose tariffs on up to $60 billion of Chinese imports, specifically targeting the technology and telecommunications sectors.
Elsewhere on the Comex, silver futures were almost unchanged at $16.54 a troy ounce.
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