Gold Down to $1264 as U.S. Dollar Strengthens

Gold and silver sank to 12-week lows as the dollar strengthened before data that may back the case for the Federal Reserve to raise borrowing costs at a time when the European Central Bank boosts stimulus. Platinum dropped to the lowest level in more than four months.

Bullion for immediate delivery fell as much as 0.3 percent to $1,257.36 an ounce, the lowest level since June 10, and traded at $1,260.01 at 8:42 a.m. in Singapore, according to Bloomberg generic pricing. The metal is on course for a weekly decline after the ECB yesterday unexpectedly cut interest rates. Spot platinum lost as much as 0.2 percent to $1,403 an ounce, the lowest price since April 24.

Data today may show payrolls climbed by more than 200,000 in August for a seventh straight month after a report yesterday showed U.S. services expanded at the fastest pace in nine years. The dollar rose to a 14-month high against the euro as the first U.S. rate increase since 2006 is probable next year, while the ECB introduces additional measures to support growth.

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.