Commodities

Gold Dips but Not Far From 2-Week Low, as Dollar Chugs back to Life by Investing.com



By Barani Krishnan

Investing.com — Gold prices retreated Thursday as the dollar resumed its upward trek after a five-day drop, taking some shine off bullion’s best showing in nearly two weeks during the previous session.

Gold was still heading for a weekly gain, which would be its fourth out of five weeks. 

It was not even close to the $1,800 level technical chartists believe would be critical for it to break out of the malaise it has been in since mid August, when it was aggressively backed by the Federal Reserve.

Gold’s benchmark futures contract on New York’s Comex, , settled  Thursday’s trade at $1,665.60 an ounce, down $3.60, or 0.2%. It posted a 0.6% gain for the week.

After a drop to $1654.91 at midday, the, which is closely tracked than futures by some traders was at $1662.07 by 16:00 ET (20:00 GMT).

The, which pits greenback against the euro and yen, pound Canadian dollar, Swedish Krona, Swiss Franc, and Canadian dollar, reached nearly 110.48 in session, a new high since Oct.19.

According to the Commerce Department the dollar rose as the U.S. economy in 2022 for the first-time in 2022, with a growth rate of 2.6% in its third quarter. This was after two previous quarters in negative. Economists had predicted a growth rate of 2.4% in the third quarter. A stronger economy will enable the Fed to continue aggressive rate hikes in an effort to curb the worst U.S. Inflation in 40 years.

Some still believe that the U.S. economy is in trouble despite its strong forecast for growth in the third quarter. This could explain the modest losses gold suffered on Thursday.

“The strong headline number is welcome news, but when you dig into the numbers it is clear that an economic slowdown is here,” said Ed Moya, analyst at online trading platform, OANDA. “The international trade component helped this quarter and that obviously won’t continue going forward. Consumer spending is falling and prices are dropping quickly. Business investment is clearly weakening.”  

News Source and Credit

Stocksak Editorial

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