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MTECHTIPS:-Gold tumbles below $1,200 on stronger dollar, U.S. data ahead
MTECHTIPS:-Gold tumbles below $1,200 on stronger dollar, U.S. data ahead
Gold prices tumbled below the $1,200-level early on Tuesday, as a broadly stronger U.S. dollar dampened the appeal of the precious metal. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery hit an intraday low of $1,195.70 a troy ounce, a level not seen since May 13, before trading at $1,196.70 during European morning hours, down $8.20, or 0.68%. On Monday, gold prices tacked on 40 cents, or 0.03%, to close at $1,205.30 as trade volumes were light with U.K. markets closed for a public holiday and markets in the U.S. remaining shut for the Memorial Day holiday. Futures were likely to find support at $1,191.50, the low from May 13, and resistance at $1,215.20, the high from May 22. Also on the Comex, silver futures for July delivery lost 21.4 cents, or 1.26%, to trade at $16.83 a troy ounce, the lowest level since May 13. Silver closed at $17.06 on Monday, up 1.4 cents, or 0.08%. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.7% at 97.14 early Tuesday, the strongest level since April 27. A stronger U.S. dollar usually weighs on gold, as it dampens the metal’s appeal as an alternative asset and makes dollar-priced commodities more expensive for holders of other currencies.
