Gold remains on the downside as U.S. dollar strengthens
Investing.com - Gold prices remained lower on Tuesday, as demand for the U.S. dollar strengthened ahead of this week's Jackson Hole Summit.
Comex gold futures were down around $5.21, or about 0.40%, to $1,291.57 a troy ounce by 08:35 a.m. ET (12:35 p.m. GMT).
Traders were looking ahead to this week's annual meeting of top central bankers and economists in Jackson Hole, Wyoming, where the heads of the U.S. and European central banks will be making keynote speeches.
Their comments will be closely watched for fresh policy signals from the world’s two most powerful central banks.
The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, up 0.41% at 93.39, off the previous session's one-week low of 92.92.
The precious metal is sensitive to moves in U.S. rates, which lift the opportunity cost of holding non-yielding assets such as bullion. A gradual path to higher rates is seen as less of a threat to gold prices than a swift series of increases.
However, gold prices were still within close distance of a nearly one-year high reached on Friday, as geopolitical tensions persisted after North Korea unveiled a propaganda video of its threat to fire missiles near the U.S. territory of Guam.
Pyongyang threatened the U.S. with “merciless revenge” for ignoring its warnings over annual military drills with South Korea.
Elsewhere on the Comex, silver futures were almost unchanged at $17.03 a troy ounce.
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