Gold prices traded lower today after dollar saw ample surges on upbeat data. The commodity managed to slip after having great back-to-back sessions. Investors look to favor the currency as the geopolitical crisis continues to die down.
The safe haven for investors looks to crumble as the rousing crisis continues to fade. Gold prices were taking sharp turns after dollar surge were tallied. The greenback manages to propel to bullish grounds after home-building stats rise.
According to the economic results, the local building permits for March managed to hit a new high. The building data climbed by a total of 2.5% from last month according to the data revealed by the Census Bureau.
The data were stronger than what most analysts expected. The surprising jump last month managed to lift the dollar prices out of its slumping misery. The greenback managed to offset the geopolitical loss it experienced since the week started.
The positive Q1 from China also pushes gold prices lower. The country managed to hit a massive high from their previous reports as they stay ahead of forecasts. They managed to increase by a total of 6.8%, incrementally above the 6.7% forecasts.
Gold Prices on the Market
Spot gold was the first one to fall in the market. It managed to put a 0.3% decline on the previous session at $1,343.31 per ounce in midday trading. The U.S. gold future also follows the same pattern as spot gold.
Gold futures delivery for June was down by a total of 0.2% on the same session at $1,346.30 per ounce. The commodity’s price managed to hit a stellar price last week at $1,365.23 per ounce just last week as geopolitical tension erupts.
Dollar, Gold Market Movement
On the other hand, the greenback managed to surge on a tremendous level today. The dollar index managed to hit an incredible 0.17% to 89.37 on the previous session. The stronger currency continues to pull the commodities prices down.
To add, the Federal Reserve also hints the market with another interest rate hike this year, a total of two or three as a matter of fact. The interest rate hike talks also push the dollar prices higher the currency indulge in such economic movements.
Furthermore, a huge number of major currencies were also upbeat on the previous session. This also managed to pull the commodity’s prices down in the market. The overwhelming first-quarter economic continues to boost currencies, pushing commodity prices lower.
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