Here’s what’s weighing on gold prices lately
london — Gold dipped on Wednesday as the dollar firmed ahead of a Federal Reserve policy decision and investors opted to sell bonds and buy equities as worries over a worldwide growth slowdown fade.
Company results and economic data have been upbeat of late. Germany’s Ifo business survey on Tuesday also showed confidence, soaring to record highs in July, while US consumer confidence levels jumped to near 16-year highs, boosting the dollar.
“It’s mainly sky-rocketing risk appetite that’s weighing on gold. US stocks closed at record highs, bonds tumbled, yields increased sharply and these are the ingredients for lower gold prices,” said Commerzbank analyst Carsten Fritsch.
“Stocks seem immune, at least for the moment, against a rather uncertain economic outlook and the political mess in Washington, and unless this changes gold will struggle to make meaningful gains,” he added.
Spot gold fell 0.1 per cent to $1,246.76 per ounce at 1206GMT. US gold futures for August delivery fell 0.4 per cent to $1,246.50 per ounce. —