Gold drops to 20-month low, dollar slips

Gold futures fell in Asian trade to January 2017 lows, while the dollar index tapered off June 2017 highs, ahead of housing, unemployment data from the US later today. 

As of 03:55 GMT, gold futures due in December declined 0.59% to $1,178.00 an ounce, marking 20-month lows, while the dollar index shed 0.12% to 96.58, moving off 14-month peak. 

Now investors await US unemployment claims data, expected to have increased 2 thousand to 215 thousand in the week ending August 11, while continuing claims are estimated to have fallen 14 thousand to 1.741 million in the week ending August 4. 

An index tracking the manufacturing sector in Philadelphia is estimated to slow down to 21.9 from 25.7 in July, while housing permits are expected at 1.31 million in July, up 1.4%, as housing starts are estimated at 1.27 million in July, up 7.4%. 

The dollar index has strengthened recently against major currencies, marking the third weekly profit in a row and weighing on dollar-denominated commodity futures, on prospects of two more Federal Reserve rate hikes this year.