Gold on track to fall for fourth day as strong dollar weighs
NEW YORK (May 25) Gold prices slipped on Thursday, on track to fall for a fourth straight session as Fitch Ratings’ decision to put the U.S.’s AAA credit rating on notice helped boost the U.S. dollar.
Price action
- Gold futures for June delivery GC00, -0.86% GCM23, -0.84% declined by $3.30, or 0.2%, to $1,961 per ounce on Comex.
- July silver SI00, -0.71% SIN23, -0.71% declined by 14 cents, or 0.6%, to $23.10 per ounce.
- Palladium for June delivery PAM23, +0.46% was flat at $1,403 per ounce. Platinum for July delivery PLN23, -0.06% was also flat at $1,029.70.
- Copper for July delivery HGN23, 0.77% rose by 3 cents, or 0.8%, to $3.59 per pound.
Market drivers
Fitch Ratings Inc. announced Wednesday evening that it was considering a downgrade of the U.S.’s credit rating. The news helped boost the value of the U.S. dollar, while weighing on global stocks and gold.
Since climbing to their second-highest level on record earlier this month, gold prices have pulled back as the U.S. dollar has strengthened. A stronger dollar makes gold, which is priced in dollars, more expensive for buyers in other currencies.
A stronger dollar and rising Treasury yields were cited as the key outside markets weighing on gold by analysts.
“Gold and silver prices are slightly lower in early U.S. trading Thursday, with silver dropping to a two-month low. A surging U.S. dollar index and rising U.S. Treasury yields are bearish outside market elements working against the precious metals on this day,” said Jim Wyckoff, senior analyst at Kitco, in emailed commentary.
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