Gold Prices Ease from Two-week High as Dollar Edges Higher
Gold slipped on Thursday after hitting a nearly two-week high earlier in the session, hurt by an uptick in the dollar, although worries over the US government’s increasing debt burden and fiscal outlook kept prices above $3,300 level.
Spot gold was down 0.3% at $3,303.82 an ounce, as of 1020 GMT, after hitting its highest level since May 9 earlier in the session.
US gold futures fell 0.3% to $3,304.10.
“Selling coming in especially from those looking to book profits and a degree of recovery in the dollar seems to have taken some of the shine off gold,” Ross Norman, an independent analyst said, according to Reuters.
The dollar index edged up 0.2% against its rivals, making greenback-priced bullion more expensive for other currency holders.
“There are concerns about the way the US is managing its debt issue and one would expect gold to remain relatively firm if the markets take these tax cuts in a negative way,” Norman said.
