The dollar was able to rise again after the Federal Reserve went on to allow another U.S. interest hike for the month. Gold continues to be sensitive to rates elevating and increasing the opportunity costs on bullion that is non-yielding.
Spot gold was 0.2 percent lower around 1:32 p.m. EDT (1732 GMT). Earlier in the day, it was able to peak above $1,300 per ounce. Gold futures for the month of August went down 0.4 percent, coming in around $1,299.3 an ounce. Gold for the week is looking to be 0.5 percent lower than expectations.
According to the senior market strategist at RJO Futures, Philip Strible, treasuries are doing well. Also, with the dollar is going up and no new geopolitical strife’s are going on to support current gold prices.
The dollar was able to beat the euro, and after information coming out about more jobs being added to the U.S., Treasury yields are high. With wages going up around the U.S., it made sense for the Federal Reserve to go ahead with their plans to raise interest rates.
With the end of the political crisis’s that were wreaking havoc on the market in Italy, it did not help the euro sustain gains. However, world stocks remain in the dark as investors welcome back deal from the country.
Even so, there are investors who remain wary about trades with the U.S. and their trading partners. The weariness was coming in after the U.S. sanctioned tariffs on steel and aluminum imports.
Spot prices for silver saw an increase of 0.4 percent, coming in at $16,42 per ounce. Unfortunately, the precious metal was on its way to 0.5 decline for the week. Platinum saw a rise in its prices of 0.3 percent, coming in at a whopping $903.90 per ounce. Palladium was able to rise 1.9 percent, ending the week’s session at $1,003.90 an ounce.