Gold declines under pressure from the dollar

2022-05-12 13:51:47 GMT (Economies.com)
Gold declines under pressure from the dollar

Gold prices declined in European trade on track to hit three-month highs as the dollar index rallied to fresh 20-year highs following strong US inflation data.

 

Gold Prices Today

 

Gold prices fell over 0.4% to $1,843 an ounce , after closing up 0.75% on Wednesday, away from a three-month low at $1,832.

 

US Dollar

 

The dollar index rose 0.5% today for the sixth straight session, hitting 2002 highs at 104.54.

 

Dollar's gains are weighing on gold prices and making them more expensive to holders of other currencies.

 

The inflation data for the US bolstered the case for multiple 0.50% rate hikes by the Federal Reserve throughout the year.

 

Estimates

 

Analysts expect gold to give up $1,830 and potentially tumble below $1800 if the dollar expanded its gains.

 

The SPDR

 

Gold holdings at the SPDR Gold Trust fell 2.03 tones yesterday to a total of 1,066 tones, the lowest since March 15.

 
 
 
  Symbol Last Change Chg.%
1.0735
0.0082
0.7679%
1.2535
-0.0028
0.2213%
22.110
0.198
0.904%
110.309
0.170
0.154%
113.90
0.48
0.42%
1864.900
8.465
0.456%
 
 
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