Gold plumbs three-month lows as dollar strengthens

Gold prices took a hit in European trade to three-month lows, sharpening losses for yet another session as the dollar strengthens, with gold prices now heading for the fourth weekly loss in a row. 

Gold Prices

Prices slid over 0.6% to $1,810 an ounce, the lowest since February 7, after closing down 1.6% on Thursday as dollar spiked. 

Gold is down 4% this week, on track for the fourth weekly loss in a row, the longest such streak this year.

US Dollar

The dollar index is trading near 20-year highs at 104.92 against a basket of major rivals. 

US inflation data astounded expectations once more and paved the way for a rate hike next month.

Estimates 

Now analysts expect gold to give up the $1830 barrier, and potentially hit the important barrier of $1800.

The SPDR 

Gold holdings at the SPDR Gold Trust fell 5.8 tones yesterday, the sixth decline in a row, to a total of 1,060 tones.