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MTECHTIPS:-Gold struggles near 3-week low as U.S. dollar races higher
Gold prices struggled near the lowest level in three weeks on Monday, as the U.S. dollar edged higher amid growing expectations that the Federal Reserve would raise interest rates after the summer. On the Comex division of the New York Mercantile Exchange, gold futures for August delivery shed $2.10, or 0.18%, to trade at $1,187.70 a troy ounce during European morning hours. Prices held in a range between $1,185.70 and $1,197.30. On Friday, gold tacked on $1.00, or 0.08%, to settle at $1,189.80. Futures were likely to find support at $1,180.20, the low from May 28, and resistance at $1,208.90, the high from May 26. The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.6% at 97.52 early Monday, not far from the five-week highs of 97.88 hit last week. 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. The dollar shrugged off data on Friday showing that the U.S. economy contracted in the first quarter, as recent indications of a rebound in growth continued to support expectations for higher interest rates.
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