Gold Down to $1200 on Stronger U.S. Dollar

Gold fell on Wednesday, heading for a third day of losses, as the dollar extended gains versus the euro after U.S. economic data.  Data on Wednesday showed private employers added 212,000 jobs in February, while January’s private payrolls were revised upwards to 250,000.

Spot gold , higher initially, fell 0.1 percent to $1,201.30 an ounce by 1538 GMT. The metal had fallen to a one-week low of $1,194.90 on Tuesday, dented by an 11-year high of the dollar and expectations of a U.S. interest rate hike.

U.S. gold for April delivery dropped $3.90 to $1,200.40 an ounce.  “It feels like gold is going to test the $1,200 psychological level,” Bernard Sin, senior vice president at MKS Finance.  “It is struggling to find the real direction and in the meantime it is reacting to the dollar and the U.S. data, which will continue to drive the market for now.”

CNBC

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