Gold eases off one-week high as dollar ticks up
London (Aug 16) - Gold prices retreated from a one-week high on Monday due to a slight uptick in dollar, although a plunge in U.S. consumer sentiment eased some concerns about early tapering by the Federal Reserve.
Spot gold fell 0.3% to $1,773.12 per ounce by 0646 GMT, having earlier hit its highest since Aug. 6 at $1,782.40. U.S. gold futures were down 0.1% to $1,775.80.
The dollar index was up about 0.1%, having hit a one-week low in the previous session.
The sharp price move on Friday also triggered some minor profit-taking on Monday, he said.
Gold jumped 1.5% on Friday after data showed U.S. consumer sentiment dropped sharply in early August to its lowest level in a decade, soothing Fed taper fears among investors.
Though an increasing number of policymakers have been discussing an early tapering and a possible interest rate hike, a mixed bag of economic data out last week has led markets to believe that the Fed may hold off a bit.
Higher interest rates increase the opportunity cost of holding non-yielding bullion.
Investors are now looking ahead to the minutes of the Fed’s July meeting on Wednesday and Chairman Jerome Powell’s comments on Tuesday. U.S. monthly retail sales data is also likely to give further cues on consumer sentiment.
Political uncertainties arising from the Afghan government’s collapse will also be closely watched.
Silver fell 0.9% to $23.53 per ounce. Platinum slipped 1.6% to $1,010.24 and palladium was down 0.6% to $2,634.82.
Reuters
