Gold Lower After Stronger USD and Equities

Gold fell to its lowest in three weeks on Wednesday on higher equities and as the dollar hit a four-month high following strong U.S. economic data, which raised expectations that the Federal Reserve may raise rates before the end of the year.

Spot gold fell 1.19 percent to $1,315.51. U.S. gold was down 1.25 percent at $1,315.60 an ounce.

A fund that tracks gold mining companies was down 3.84 percent.

The dollar was up 0.14 percent against a basket of six currencies, after hitting its highest for four months on data showing U.S. housing starts surged more than expected in June, underpinning a theme of strength in the U.S. economy.

via CNBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza