Gold settles lower as dollar scales 2018 peak

Gold futures tilted lower in American trade from May 15 highs as the dollar index scaled November 14 peak, following earlier data from the US, and after a speech by Federal Reserve Bank of Atlanta President Raphael Bostic in Dallas. 

As of 02:32 GMT, gold futures due on August 15 fell 0.17% to $1,307.60 an ounce from the opening of $1,309.80, while the dollar index rose 0.44% to 94.19 from the opening of 93.77. 

Earlier US data showed durable goods orders fell 1.7% in April, compared to a 2.7% rise in March, and missing expectations of a 1.3% drop, while core orders accelerated to 0.9% from 0.1%, beating forecasts of 0.5%. 

Federal Reserve Chair Jerome Powell participated earlier today in a panel discussion titled "The future of central banking?" at the Sveriges Riksbank Anniversary Conference, in Stockholm, while the University of Michigan's final reading for the consumer sentiment survey came at 98.8 in May, same as the preliminary and the April reading and in line with forecasts. 

 World Gold Council 

Recently, the World Gold Council reported a 7% drop in global demand in the first quarter of 2018 to 973.5 tonnes, the lowest since the first quarter of 2008, as investments fell 27% on the precious metal to 287 tonnes from 383 tonnes in the first quarter of 2017. 

Central banks' gold demand rose 42% to 116.5 tonnes, especially from Russia, while jewelry demand steadied at 487.7 tonnes, as mine supplies grew 1% y/y to 770 thousand tonnes. 

Gold holdings at SPDR Gold Trust, the world's largest gold-backed investment fund, steadied on Thursday at 852.04 tonnes, the lowest since April 4, after rising 3%, or 23.63 tonnes in 2017, while gold prices rose 13% last year.