Gold Prices Hold Onto Modest Gains Despite Dollar Strength

Published 2017-10-05, 09:07 a/m
Gold prices remain slightly higher with Fed speeches on tap
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Investing.com - Gold prices held onto modest gains on Thursday, despite the fact that upbeat U.S. economic reports pushed the dollar higher, as investors were still waiting for comments by a number of Federal Reserve officials later in the session.

Comex gold futures were up $2.98, or about 0.24%, at $1,279.87 a troy ounce by 09:00 a.m. ET (13:00 GMT), still within close distance of Tuesday's eight-week low of $1,271.00.

The greenback found support after the U.S. Department of Labor said initial jobless claims fell more than expected to 260,000 last week.

Another report showed that the U.S. trade deficit narrowed in August and that exports climbed to a two-and-a-half year high.

Separately, speaking at a conference in Austin, Texas, Philadelphia Fed Bank President Patrick Harker on Thursday said he is still planning on one more rate hike this year and three next year.

"I still have three rate hikes in for next year, but again we will have to see how the dynamics play out," Harker said.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, was up 0.27% at 93.56, not far from Tuesday's one-and-a-half month high of 93.78.

Gold is sensitive to moves in the dollar. A weaker dollar makes gold less expensive for holders of foreign currency.

Elsewhere on the Comex, silver futures advanced 0.73% to $16.75 a troy ounce.

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