Gold Price Reverses Gains as Stronger Dollar Weighs

New York (Aug 11)  Gold prices ended the day lower Thursday, reversing gains under pressure from a stronger U.S. dollar. Gold for December delivery settled down 0.1% at $1,350.00 a troy ounce on the Comex division of the New York Mercantile Exchange, after trading as high as $1,359.40 earlier in the session.

The precious metal had suffered losses after a strong jobs report last week bolstered the case for the Federal Reserve to raise interest rates before the end of the year. However, trader expectations for a rate increase have since tapered, putting more strength in gold.

"There was a glimmer of hope after the [Friday jobs data]...that seems to have subsided," said Bob Haberkorn, senior market strategist at RJO Futures.

Higher rates tend to weigh on gold prices, since the metal pays its holders nothing and struggles to compete with yield-bearing assets when borrowing costs rise.

Looking forward, the U.S. Commerce Department's July retail sales will be released Friday, with economists forecasting 0.5% growth. A healthy report, combined with strong job data released last week, could provide momentum for solid third-quarter GDP and an interest-rate increase in the coming months.

"I think we're on pause here," Mr. Haberkorn said. "The gold market is waiting on Chinese and U.S. retail sales before it sets its next path."

Source: NASDAQ