Gold to $1283 as U.S. Economy Weighed With Tensions

Gold held below $1,300 an ounce as investors weighed a strengthening U.S. economy and dollar against signs of easing tensions around the world.

Bullion for immediate delivery traded at $1,282.61 an ounce at 9:32 a.m. in Singapore from $1,281.20 yesterday, when prices rose as much as 1.1 percent before ending 0.3 percent higher, according to Bloomberg generic pricing. The metal on Aug. 21 dropped to $1,273.14, the lowest level since June 18, on speculation the U.S. Federal Reserve will raise borrowing costs sooner than forecast.

The dollar climbed to its highest level in almost a year against the euro on speculation the Fed will increase rates next year, while the European Central Bank will add to stimulus. Data today may show German inflation stalled after a report yesterday showed U.S. consumer confidence rose to a seven-year high, sending the Standard & Poor’s 500 Index to a record.

Bloomberg

This article is for general information purposes only. It is not investment advice or a solution to buy or sell securities. Opinions are the authors; not necessarily that of OANDA Corporation or any of its affiliates, subsidiaries, officers or directors. Leveraged trading is high risk and not suitable for all. You could lose all of your deposited funds.