DOLLAR STRENGTH KEEPS GOLD AT SIXTH STRAIGHT WEEKLY FALL
Gold is at its longest retreat in 16 years as the U.S. dollar is still firm and U.S. data is signaling an interest rate hike in September. July is also Gold’s biggest monthly decline in two years. “Gold is an asset that pays no interest or coupon and the rate hike is certainly putting pressure on prices,” ING Bank senior strategist Hamza Khan said. “We could see the fall extending to a triple-digit level, but that could trigger some buying, especially among Asian consumers.” Spot Gold fell 0.6 percent to $1,081.30 an ounce, losing 1.6 percent for the week.
Gold is further declining after the Federal Reserve’s meeting this week that said our economy is “expanding moderately.” Argonaut Securities analyst Helen Lau referred to the U.S. rate increase, saying, “[it] is enough to keep Gold trading at low levels.” According to former Fed officials, they will not need balanced economic risks to proceed with a September rate hike.
At 9:24 A.M. (ET), the APMEX Precious Metals spot prices were:
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