Gold Prices Flat, Pressured by Stronger Dollar
November 14 2016 - 6:08AM
Dow Jones News
By Georgi Kantchev
LONDON--Gold prices was broadly flat Monday in London, pressured
by a stronger U.S. dollar in the aftermath of Donald Trump's
victory in the U.S. presidential election.
Spot gold was down 0.02% at $1,224.60 a troy ounce in volatile
trade as other precious metals fell.
The Wall Street Journal Dollar Index, which weighs the dollar
against a basket of other currencies, was up 0.8%. A stronger
dollar is bearish for gold, which is priced in the greenback.
"Gold is still facing considerable headwind: the U.S. dollar is
continuing to appreciate," said analysts at Commerzbank.
The prospect of the U.S. Federal Reserve hiking interest rates
in December is also pressuring investor sentiment in gold, which
doesn't bear interest so struggles to compete when rates rise.
Traders in the market for Fed-funds futures, derivatives used to
bet on the timing of Fed interest-rate decisions, reflect an 81%
probability of a rate rise by December, according to CME Group.
Among other precious metals, silver fell 0.9% to $17.23 an
ounce, platinum shed 0.3% to $940.60 an ounce, and palladium fell
1.5% to $674.20 an ounce.
-Write to Georgi Kantchev at georgi.kantchev@wsj.com
(END) Dow Jones Newswires
November 14, 2016 05:53 ET (10:53 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
CME (NASDAQ:CME)
Historical Stock Chart
From Mar 2024 to Apr 2024
CME (NASDAQ:CME)
Historical Stock Chart
From Apr 2023 to Apr 2024
