Gold Edges Down From a Record as the Dollar Rises and Traders Take Profits
Gold moved down from a record high early Thursday as traders take profits while the dollar rose to a two-month high.
Spot Gold was last seen down 0,72% to $4,010.40 per ounce.
The price of the precious metal has climbed 21% since Aug. 18 when it began to rise as U.S. President Donald Trump threatened the independence of the Federal Reserve, while the central bank signaled it was ready to begin lowering interest rates as the U.S. labor market weakened. Strong demand from central banks and exchange-traded funds have also offer support for the metal's record run.
"Strong ETF inflows, momentum, and FOMO-driven buying have pushed prices into technically overbought territory, prompting some short-term caution," Saxo Bank wrote.
The dollar was higher again early, normally bearish for commodities priced in the currency. The ICE dollar index was last seen up 0.06 points to 98.98, the highest since Aug. 1.
Treasury yields also rose, raising the carrying cost of owning gold. The yield on the U.S. two-year note was last seen up 1.2 points to 3.603%, while the 10-year note was paying 4.144%, up 2.2 points.
Source : MT Newswires
