Gold Drifts Below $1195 Despite U.S. Dollar Drop

Gold traded near the highest level in three weeks as the dollar retreated from a five-year high after U.S. data missed analyst forecasts. Assets in the largest exchange-traded product shrank to a six-year low.

Bullion for immediate delivery was at $1,199.10 an ounce by 9:04 a.m. in Singapore from $1,197.87 yesterday, when it slid 0.3 percent, according to Bloomberg generic pricing. The metal rose on Nov. 21 to $1,207.93, the highest since Oct. 30, after China joined Japan and Europe in taking steps to spur growth by unexpectedly cutting interest rates.

Gold is on course to snap two months of losses as central banks around the world ease monetary policy at a time when the Federal Reserve moves closer to raising borrowing costs. The Bloomberg Dollar Spot Index yesterday completed its first two-day drop this month after data showed U.S. consumer spending, equipment orders and new-home sales trailed forecasts in October, while jobless claims rose to a three-month high.

Bloomberg

Content 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 Business Information & Services, Inc. or any of its affiliates, subsidiaries, officers or directors. If you would like to reproduce or redistribute any of the content found on MarketPulse, an award winning forex, commodities and global indices analysis and news site service produced by OANDA Business Information & Services, Inc., please access the RSS feed or contact us at info@marketpulse.com. Visit https://www.marketpulse.com/ to find out more about the beat of the global markets. © 2023 OANDA Business Information & Services Inc.