Gold price slips below $3,300 on dollar recovery
Gold prices slipped below $3,300 an ounce Thursday as investors took profits from the precious metal’s recent surge amid worries over the US government’s increasing debt burden.Spot gold fell 0.5% to $3,297.33 an ounce by 10:30 a.m. ET, reversing its earlier rise to a two-week high of $3,345.33. US gold futures took a similar hit, down 0.6% at $3,294.70 an ounce.Live Gold Price Chart and Real-Time UpdatesMeanwhile, the US dollar index edged 0.3% higher, recouping some of its losses from the recent credit ratings downgrade.“Selling coming in especially from those looking to book profits and a degree of recovery in the dollar seems to have taken some of the shine off gold,” Ross Norman, an independent analyst, told Reuters.Gold remains strongStill, gold’s outlook remains generally positive given the economic pressures that loom over the US despite its trade truce with China. A Reuters poll of economists also confirmed these worries.“This situation may be a crisis for many assets, but it’s a perfect outcome for gold. As Moody’s downgrade signals growing concern over US credit stability and inflation fears linger, investors are seeking safety in physical gold,” said Rick Kanda, managing director at The Gold Bullion Company.“Ultimately, this shift in security needs is driving up prices, and by the looks of things, this is just the beginning,” he added.Gold initially moved higher after US Treasury Department’s 20-year bond auction on Wednesday met soft demand, which weighed on risk sentiment among Wall Street investors.Market participants also worried that the US government debt would swell by trillions of dollars if Congress passes President Donald Trump’s proposed tax-cut bill, which cleared a major hurdle on Thursday after it was passed by the House of Representatives.“There are concerns about the way the US is managing its debt issue and one would expect gold to remain relatively firm if the markets take these tax cuts in a negative way,” Norman said.So far this year, the yellow metal has gained by nearly 25% on the back of rising geopolitical and economic risks, Last month, it set a record high of just above $3,500 an ounce.(With files from Reuters)Weiter zum vollständigen Artikel bei Mining.com
Quelle: Mining.com
