Gold declines as the dollar rises after US data that indicates a robust economy

Gold declines as the dollar rises after US data that indicates a robust economy

Spot gold dropped 0.1% to $2,024.01 an ounce at 10:56 a.m. ET (1556 GMT), after reaching its highest level since February 9 at $2,034.69. At $2,033.50, US gold futures were stable.

Due to a stronger US currency and statistics on jobless claims that suggested the economy was expanding, gold prices dropped on Thursday from a nearly two-week high as investors awaited word on the US Federal Reserve's interest rate policy. awaited financial information.

Spot gold declined 0.1% to $2,024.01 an ounce at 10:56 a.m. ET (1556 GMT), after reaching its highest level since February 9 at $2,034.69 earlier in the day. At $2,033.50, US gold futures were stable.

"We see gold remaining at these valuations and there is more adverse risk for gold in the short term than turned," said World Gold Council chairman Chris Gaffney, if we continue to get encouraging statistics about the US economy and if inflation does not decline. EverBank Marketplace.

The number of Americans submitting new claims for unemployment benefits surprisingly dropped last week, according to statistics, which suggested that job creation is likely to stay strong in February. This news caused the dollar to rise by 0.1%.

For holders of foreign currencies, bullion becomes more costly with a rising dollar.

Releasing the minutes of their most recent policy meeting on Wednesday, the Fed's officials expressed a general worry about the potential consequences of prematurely lowering interest rates.

According to the CME Fed Watch tool, low interest rates increase the allure of storing non-yielding gold and give the market a roughly 66% likelihood of a rate decrease in June.

Geopolitical issues, according to Gaffney, seem to underpin gold's safe-haven appeal, while technical analysis indicates that the metal has formed a "fairly hard floor" around about the $2000 mark.

Middle East tensions have increased as a result of Israel's shelling of Rafah, which is south of Gaza.

Other precious metal spot prices included silver down 0.2% at $22.82, palladium up 1.4% at $963.25, and platinum up 1.9% at $899.90 an ounce.