Gold little changed, strong U.S. dollar still weighs

Shutterstock photo

Investing.com -

Investing.com - Gold prices were little changed on Monday, although a broadly stronger U.S. dollar continued to weigh on the precious metal.

On the Comex division of the New York Mercantile Exchange, gold futures for December delivery were little changed at $1,267.25.

The December contract ended Friday's session little changed at $1,267.70 an ounce.

Futures were likely to find support at $1,268.60, the low from October 21 and resistance at $1,271.50, the high from October 20.

Gold prices remained under pressure as expectations for a U.S. rate hike before the end of the year continued to lend broad support to the greenback.

The dollar was boosted after New York Fed President William Dudley said last week that the U.S. central bank will likely raise interest rates later this year if the economy remains on its current trajectory.

On Friday, San Francisco Fed President John Williams said that "this year would be good" for a rate hike.

Growing expectations that Hillary Clinton will win the U.S. presidential election have also added to the view that a December rate hike is likely.

The U.S. dollar index, which measures the greenback's strength against a trade-weighted basket of six major currencies, was steady at 98.60, just off a fresh eight-month peak of 98.82 hit overnight.

A stronger U.S. dollar usually weighs on gold, as it dampens the metal's appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.

Elsewhere in metals trading, silver futures for December delivery advanced 0.77% to $17.627 a troy ounce, while copper futures for December delivery gained 0.45% to $2.098 a pound.

Investing.com offers an extensive set of professional tools for the financial markets.
Read more News on Investing.com and download the new Investing.com apps for Android and iOS! http://glocdn.investing.com/news/LYNXMPEB1G0BT_M.jpg

The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.

This article appears in: Investing , Forex

More from Investing.com




Forex, Equities

Research Brokers before you trade

Want to trade FX?