Gold Prices Push Lower as U.S. Dollar Strengthens
Investing.com - Gold prices pushed lower on Tuesday, as the dollar strengthened after upbeat U.S. data and amid mounting speculation that the next head of the Federal Reserve could be more hawkish.
Comex gold futures were up $6.67 or about 0.51% at $1,303.09 a troy ounce by 08:45 a.m. ET (12:45 GMT), their lowest since October 11.
The U.S. dollar found support after data showed that U.S. import and export prices jumped higher than expected in September.
The greenback had already strengthened following a report that U.S. President Donald Trump was favoring Stanford economist John Taylor, seen as more hawkish than current Chair Janet Yellen, to head the Fed.
Trump is also due to meet with Yellen later in the week as part of his search for a new candidate for her position, a source familiar with plans for the meeting said.
Market participants are also keeping an eye on current Fed Governor Jerome Powell and former Fed official Kevin Warsh as potential candidates to succeed Yellen when her term ends in February.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.32% at 93.44, the highest since October 10.
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. interest rates lifts the opportunity cost of holding non-yielding assets such as bullion.
Elsewhere on the Comex, silver futures lost 1.52% to $17.11 a troy ounce.
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