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Gold pushes higher as dollar sinks to 8-month lows

Investing.com -

Investing.com - Gold prices edged higher in European trade on Thursday, as the dollar extended its recent decline to the lowest level since October, boosting the appeal of the yellow metal.

Comex gold futures were at $1,252.69 a troy ounce by 3:05AM ET (0705GMT), up $3.60, or around 0.3%. Gold ended higher on Wednesday to notch its fifth gain in six sessions.

Also on the Comex, silver futures ticked up 12.0 cents, or roughly 0.7%, to $16.84 a troy ounce.

The dollar wallowed at one-year lows against the euro and slipped against sterling as investors priced in tighter monetary policy in Europe, following hawkish comments made by key central bank officials.

Sterling added to gains made after Bank of England Governor Mark Carney said on Wednesday that the central bank is likely to need to raise interest rates as the British economy comes closer to operating at full capacity.

Meanwhile, European Central Bank President Mario Draghi sparked the euro's rally on Tuesday, when he hinted that the ECB could trim its stimulus this year.

The Federal Reserve hiked interest rates earlier this month and left the door open for further increases later in the year, though a batch of mixed economic data recently has had investors wondering whether the Fed would be able to stay on its planned tightening path.

The dollar index, which measures the greenback against a basket of six major currencies, was down 0.3% at 95.49 in early trade, its lowest since October 3.

The buck came under additional pressure following a delay of the healthcare bill vote by the U.S. Senate earlier in the week.

Market participants are concerned that the Trump administration will find it hard to follow through with tax cuts and fiscal stimulus steps, without first getting the healthcare bill passed.

On the data front, traders will also keep an eye out on a final reading of U.S. first-quarter economic growth due later in the global day for further evidence on the health of the world's biggest economy.

The data is expected to show that the economy expanded at a 1.2% annual rate in the first three months of 2017, unchanged from a preliminary estimate.

Among other precious metals, platinum tacked on 0.3% to $926.90, while palladium rose 0.6% to $859.33 an ounce.

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


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

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