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Gold Prices Little Changed after Mixed U.S. Data

Published 09/28/2017, 08:39 AM
Gold holds steady as U.S. dollar remains near 1-month highs after U.S. data
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Investing.com - Gold prices were little changed near one-and-a-half month lows on Thursday, after the release of mixed U.S. economic reports and as the greenback was still broadly supported.

Comex gold futures were down $13.24 or about 1.04% at $1,288.58 a troy ounce by 08:35 a.m. ET (12:35 GMT), their lowest since August 25.

Data on Thursday showed that U.S. economic growth in the second quarter was revised up more than expected.

Separately, the U.S. Department of Labor said initial jobless claims increased more than expected last week.

The greenback had strengthened broadly following reports on Wednesday that U.S. President Donald Trump proposed the biggest U.S. tax overhaul in three decades.

The proposal still faces an uphill battle in the U.S. Congress, with the Republican Party divided over it and Democrats hostile.

The U.S. dollar was already supported by fresh expectations for a December rate hike by the Federal Reserve following hawkish remarks by Fed Chair Janet Yellen on Tuesday.

The U.S. dollar index, which measures the greenback’s strength against a trade-weighted basket of six major currencies, wasdown 0.16% at a 93.12, just off a one-month peak of 93.50 hit earlier in the day.

Gold is sensitive to moves higher in both U.S. rates and the dollar. A stronger dollar makes gold more expensive for holders of foreign currency, while a rise in U.S. rates lifts the opportunity cost of holding non-yielding assets such as bullion.

Elsewhere on the Comex, silver futures rose 0.21% to $17.86 a troy ounce.

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