Gold Prices Wallow at 1-Week Lows on Stronger Dollar
Gold prices were wallowing at one-week lows on Thursday, after sharp falls in the previous session on a rally in the dollar after data showing faster U.S. economic growth and hopes for a diplomatic breakthrough with North Korea.
Gold futures for April delivery on the Comex division of the New York Mercantile Exchange slid $1.3 or 0.1% to $1,323.30 a troy ounce by 04:27 AM ET (08:27 AM GMT) after ending Wednesday’s session down 1.3%.
The dollar was boosted after data on Wednesday showing that the U.S. economy grew by a larger than initially estimated 2.9% in the fourth quarter.
The data left the way clear for a slightly more aggressive pace of interest rates hikes by the Federal Reserve this year. The Fed hiked rates for the first time this year last week and stuck to its projection for three rate hikes this year.
The U.S. currency received an additional boost after China said on Wednesday that North Korea’s leader Kim Jong Un had pledged his commitment to denuclearization while U.S. President Donald Trump tweeted that Kim looked forward to meeting with him.