The price of gold edged down on Monday’s session. This was after the U.S. dollar recovered from its recent declines and U.S. stocks all finished on their record highs.
Looking at current prices, U.S. gold futures dropped as low as 0.4 percent to settle at $1,346.50 an ounce for its February delivery. Meanwhile, spot gold edged lower by 0.1 percent to finish at $1,348.10 an ounce.
Lee Cheong Gold Dealers’ chief dealer Ronald Leung said the U.S. currency is attempting to be on top again and it has been highly influencing the price of the yellow metal, adding that there is a number of buying and selling related to the dollar in the gold market currently.
It is already given than gold prices are fragile to stronger greenback because it will make it more expensive for holders outside the United States. This will further weaken the demand for safe-haven buying. The index which measures the value of the greenback against its major opposing currencies, the U.S. dollar index, was last seen 0.2 percent up at 89.215.
Still, the bullion managed to hover close its best level in 17 months on the previous week after the U.S. dollar declined, following the statement of U.S. Treasury secretary Steven Mnuchin supported a weaker dollar.
Looking at other precious metals; platinum rose by 0.1 percent at $1,010.80 an ounce, palladium fell by 0.3 percent at $1,088.47 an ounce, and spot silver was almost untouched at $17.39 an ounce.