Gold Prices Slip Lower As Dollar Gains – Outlook Cautious
Feb, 21st 10:46
Gold prices fell to 1-week lows on Wednesday, as strength in the U.S. dollar continued to weigh, although caution ahead of the minutes of the Federal Reserve’s latest meeting and uncertainty surrounding a big U.S. debt auction this week was expected to limit the greenback’s gains.
Gold prices were down 0.09% at $1,333.0 a troy ounce by 02:00 a.m. ET (06:00 GMT), the lowest since February 14.
The dollar has been pressured lower recently by expectations for a faster pace of monetary tightening outside the U.S., which would lessen the divergence between the Fed and other central banks.
Gold is sensitive to moves in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.
On the technical charts, Gold is trading sideways, above the 200 day EMA. The market is trading below the 9 day and the 20 day moving averages. The RSI is at 47.69 and the MACD is below the signal line. The market is expected to trade in the positive zone for the day.
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