Gold prices retreat to nearly 4-month low as dollar perks up

Gold prices on Tuesday headed lower as one popular measure of the U.S. dollar teetered near a two-year high, producing some headwinds for bullion.

Gold for June delivery GCM9, -0.49% declined $3.80, or 0.3%, to trade at $1,273.80 an ounce, pushing the commodity back to its lowest level for a most-active contract since Dec. 26, according to FactSet data.

The moves comes as the ICE U.S. Dollar Index DXY, +0.38% a key gauge of greenback against six major rivals, was up 0.1% at 97.345. A climb to 97.71, would mark the highest level for the dollar index since June of 2017, according to FactSet data. A stronger U.S. unit can make buying the buck-pegged commodity comparatively more expensive for investors using other currencies.

Gold lost 1.5% for the holiday-shortened week, with financial markets closed for Good Friday and many markets in Europe closed for Easter Monday. Last week, gold market its fourth weekly loss in a row, with a jump in U.S. retail figures providing support for the dollar and dulling the appeal of the precious metal. A climb near records for the S&P 500 index SPX, +0.32% the Dow Jones Industrial Average DJIA, +0.21% and the Nasdaq Composite Index COMP, +0.55% also has highlighted growing appetite for assets perceived as risky and away from safe investments.

Meanwhile, the SPDR Gold Shares ETF GLD, -0.46% edged down 0.2% in premarket trade, while the miner-focused Vectors Gold Miners ETF GDX, -0.76% wasn’t actively trade before the bell.

“The precious metal remains near the lows of the year and will likely take a queue from this week’s big earnings results. The yellow metals gains are likely to be hampered by trade deal optimism between China and the US,” wrote Edward Moya, market analyst at Oanda, in a late-Monday report.


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Ed Moya

Ed Moya

Senior Market Analyst, The Americas at OANDA
With more than 20 years’ trading experience, Ed Moya is a senior market analyst with OANDA, producing up-to-the-minute intermarket analysis, coverage of geopolitical events, central bank policies and market reaction to corporate news. His particular expertise lies across a wide range of asset classes including FX, commodities, fixed income, stocks and cryptocurrencies. Over the course of his career, Ed has worked with some of the leading forex brokerages, research teams and news departments on Wall Street including Global Forex Trading, FX Solutions and Trading Advantage. Most recently he worked with, where he provided market analysis on economic data and corporate news. Based in New York, Ed is a regular guest on several major financial television networks including CNBC, Bloomberg TV, Yahoo! Finance Live, Fox Business and Sky TV. His views are trusted by the world’s most renowned global newswires including Reuters, Bloomberg and the Associated Press, and he is regularly quoted in leading publications such as MSN, MarketWatch, Forbes, Breitbart, The New York Times and The Wall Street Journal. Ed holds a BA in Economics from Rutgers University.
Ed Moya