Is Gold Resilient in the Face of a Stronger U.S. Dollar?

Gold lost some ground Tuesday as the U.S. dollar turned positive. Investors are waiting on U.S. inflation figures later this week for further clues about the pace of interest rate rises. Spot gold was down 0.3% at $1,253.70 an ounce, while U.S. gold futures fell 0.4% to $1,259.6 an ounce. But, one analyst remains confident in gold, especially as he looks to the metal’s resilience amid rallying U.S. stock markets. ‘I think we’ve given up worrying about the dollar and yet gold’s holding levels really well,’ Todd ‘Bubba’ Horwitz of bubbatrading.com told Kitco News Tuesday. But can the metal remain sensitive to strength in the U.S. dollar? ‘Gold looks really good,’ Horwitz said. ‘As long as we can hold $1,260 – $1,240 at the lowest – I think we make a run to $1,300.’ On the silver front, Horwitz said that $16 an ounce is a ‘huge’ level and that he wouldn't be surprised to see silver up to the mid-$17 or $18 an ounce range. September Comex silver was last up $0.134 at $16.385 an ounce. (show less)

Gold lost some ground Tuesday as the U.S. dollar turned positive. Investors are waiting on U.S. inflation figures later this week for further clues about the pace of interest rate rises. Spot gold was down 0.3% at $1,253.70 an ounce, while U.S. gold futures fell 0.4% to $1,259.6 an ounce. But, one analyst remains confident in gold, especially as he looks to the metal’s resilience amid rallying U.S. stock markets. ‘I think we’ve given up worrying about the dollar and ... (read more)

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Kitco News
The Kitco News team speaks to analysts and experts on the frontlines of the market to get the most up-to-date news on the economy. The show offers a well-rounded, timely view on big market moves and any major headlines that may affect financial assets. Coined – no pun intended – as the number one source of precious metals news, Kitco News is the leading provider of up-to-date price action in the precious metals space.

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