Gold Prices Climb On Weaker Dollar

On Thursday, gold prices climbed as the dollar slipped after climbing to this year’s high overnight.

For June delivery, gold futures on the Comex division of the New York Mercantile Exchange was up $0.6, or 0.1%, to $1,292.2 a troy ounce by 12:52AM ET (04:52 GMT).

The measure of the greenback strength against a basket of six major currencies, which is U.S. dollar index, last stood at 93.12, down 0.16%.

The greenback reached 93.50 overnight – a fresh new high for this year, boosted by the better-than-expected building permits released on Wednesday evening. A key indicator of demand in the housing market, building permits came in 1.352 million, beating the estimated 1.347 million. “Industrial production in the U.S. rose 0.7%, more than anticipated in April”, also showed a report by the Federal Reserve on Wednesday.

Meantime, U.S. President Donald Trump acknowledged on Wednesday that he was not sure if his summit with North Korea would go ahead after Pyongyang threatened to pull out of the meeting as the country’s leader Kim Jong-un was not happy that the U.S. making a “one-sided demand” for the regime to surrender its nuclear weapons.

Dollar-denominated assets such as gold are sensitive to moves in the dollar – a fall in the dollar makes gold less expensive for holders of foreign currency and thus increases demand for the precious metal./investing.com

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