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PRECIOUS-Gold falls to 1-1/2-week low as dollar rises
September 13, 2017 / 10:47 AM / 10 days ago

PRECIOUS-Gold falls to 1-1/2-week low as dollar rises

    * Eyes on U.S. consumer inflation data due Thursday
    * Dollar up after report shows U.S. producer prices rebound
    * GRAPHIC-2017 asset returns: tmsnrt.rs/2jvdmXl

 (Updates prices; adds comment, second byline, NEW YORK
dateline)
    By Marcy Nicholson and Jan Harvey
    NEW YORK/LONDON, Sept 13 (Reuters) - Gold fell to a
1-1/2-week low on Wednesday, erasing earlier gains as the dollar
index jumped, though a retreat in global stocks after Tuesday's
record high prevented deeper losses. 
    Spot gold        was down 0.65 percent at $1,322.91 an ounce
by 2:34 p.m. EDT (1834 GMT), after falling to the lowest since
Sept. 1 at $1,320.51. 
    U.S. gold futures        for December delivery settled down
0.4 percent at $1,328.
    "We had a lot of positions put on last week up at the highs,
and those were weak short-term positions. We've seen a lot of
them taken off," said Bill O'Neill, partner with Logic Advisors
in Saddle River, New Jersey, referring to gold's roughly
one-year high reached last week. 
    "We're not in a fearful flight to haven atmosphere this
week. We're in a calmer, little more cautious tone and that's
weighing on gold."
    The metal's move lower came as the dollar index       
turned higher after a report showed U.S. producer prices
rebounded in August and as traders turned their focus to U.S.
consumer inflation data.       
    A firmer dollar makes gold more expensive for holders of
other currencies. 
    Concerns over North Korea's nuclear ambitions were a key
factor driving spot gold prices to 13-month highs last week at
$1,357.54 an ounce. An easing of those worries helped lift
equities to record highs early this week.  
    Demand for gold, seen as a safe investment in uncertain
times, revived earlier after U.S. President Donald Trump pledged
stronger measures against North Korea and Pyongyang promised to
fight off what it said was the threat of a U.S. invasion.
            
    "This seems to be currency led," Saxo Bank's head of
commodity research Ole Hansen said, about the gold market's move
lower.
    A gauge of global equity markets edged lower.            
    Investors in gold-backed exchange-traded funds were buying
as prices fell. Holdings of the largest gold-backed ETF, New
York's SPDR Gold Trust, rose 0.35 percent on Tuesday from
Monday.             
    Investors awaited U.S. consumer inflation data due on
Thursday, which should give further clues about the pace of U.S.
interest rate increases. A run of weak inflation readings has
lowered expectations the Federal Reserve will raise rates in
December.         
    Among other precious metals, silver        was down 0.8
percent at $17.77 an ounce. 
    Platinum        was 1.2 percent lower at $975.05 an ounce,
after falling to $973, the lowest since Aug. 28. Palladium
       fell 1.7 percent at $938.

 (Additional reporting by Peter Hobson in London and Apeksha
Nair in Bengaluru; Editing by Mark Potter and Meredith Mazzilli)
  

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