Dollar Weighs on Gold as Prices Fall
22 March 2016 - 6:11AM
Dow Jones News
By Alistair MacDonald and Nicole Friedman
Gold settled lower on Monday as a higher dollar weighed on the
precious metal and some investors took profits after recent
gains.
Gold for April delivery settled down 0.8% to $1,244.20 a troy
ounce on the Comex division of the New York Mercantile Exchange,
according to CME Group Inc. The WSJ Dollar Index, which tracks the
greenback against a basket of other currencies, recently rose
nearly 0.2%. A stronger dollar makes gold more expensive for
holders of other currencies.
Gold is also being sold as some investors take profits. Several
brokers, including J.P. Morgan, have recently told their clients to
sell after a gain of more than 2% on Wednesday following the
Federal Open Market Committee meeting.
Still, many analysts remain bullish on gold. The FOMC
highlighted increased inflationary pressure in the U.S., and gold
has historically been used as a hedge against rising inflation.
While inflation remains low in Japan and Europe, gold tends to
react more to U.S. data.
Federal Reserve Bank of Richmond President Jeffrey Lacker said
Monday that he is confident weak inflation would begin to tick
"significantly" higher soon.
In other markets, silver futures recently rose 0.3% to $15.86 a
troy ounce, platinum futures rose 1% to $980.70 a troy ounce, and
palladium gained 2% to $602.15 a troy ounce, according to FactSet
data.
Michael S. Derby and Mike Cherney contributed to this
article.
Write to Alistair MacDonald at alistair.macdonald@wsj.com and
Nicole Friedman at nicole.friedman@wsj.com
(END) Dow Jones Newswires
March 21, 2016 14:56 ET (18:56 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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