The gold price extended losses on Tuesday afternoon, with one-month highs in the dollar weighing across the precious metals complex.
Spot gold was last at $1,187.80/1,188.60 per ounce, down $18 for the session and close to its lowest in two weeks at $1,185.70 hit earlier.
Other metals also bore the brunt of the stronger greenback – silver was last down 30 cents at $16.75/16.80 per ounce, a two-week low. The PGMs were mixed – platinum was last seen at two-week lows, down $18 at $1,122/1,127 while palladium was $3 higher at $781/786.
The dollar has continued to build upon its pre-weekend gains, hitting a one-month high of 1.0870 against the euro, after US CPI rose 0.3 percent, above market expectations of 0.2 percent and the largest increase since 2013. A speech from Fed chair Janet Yellen in which she reiterated her view that the US economy should continue to improve, thereby warranting an initial rise in the federal funds rate at “some point this year”, also offered support.
Data today largely bolstered the dollar’s case higher. Core durable goods orders of 0.5 percent were largely in line with forecasts, as was the CB consumer confidence figure at 95.4.
New home sales bettered estimates at 517,000, as did the S&P/CS composite-20 house price index at 5.0 percent and the Richmond manufacturing index at 1.
Widespread concerns remain over Greece’s position in the eurozone after Greek interior minister Nikos Voustis said over the weekend that Athens would not be able to make debt repayments without a bailout deal with its creditors in place. Greece must repay four loans to the International Monetary Fund in June totalling 1.6 billion euros.
(Editing by Mark Shaw)
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