Gold slips

BENGALURU. — Gold slipped yesterday as the dollar firmed after recent weakness.

The greenback and gold often move in opposite directions, as gold is priced in dollars and a stronger dollar makes it more expensive for holders of other currencies. Markets were awaiting comments by a top Federal Reserve official later yesterday for clues on whether recent strength can be sustained, after last week’s soft economic data. Spot gold was down 0,1 percent at $1 252,21 an ounce at 1.27am GMT. US gold futures for August delivery fell 0,2 percent to $1 254 per ounce.

The dollar steadied against a basket of currencies early on Monday after slipping on the US economic data. US home-building fell for a third straight month in May to the lowest level in eight months as construction activity declined broadly, suggesting that housing could be a drag on economic growth in the second quarter. Markets are now looking to comments by New York Fed president William Dudley for potential support for the greenback. Dudley, a close ally of Fed chairwoman Janet Yellen, is due to take part in a roundtable with local business leaders in Plattsburgh, New York, yesterday.

Markets are also watching the UK, Brexit Secretary David Davis starts negotiations in Brussels on Monday that will set the terms on which Britain leaves the European Union and determine its relationship with the continent for generations to come.

Hedge funds and money managers reduced their net long positions in Comex gold and silver for the first time in four weeks, in the week to June 13, US Commodity Futures Trading Commission (CFTC) data showed on Friday. Reuters.