Gold price drops under $1,200/oz to lowest since Feb ’16

The gold price dropped below $1,200 per oz on Wednesday November 23 for the first time since February this year, buckling under continued pressure from a stronger dollar.

The spot gold price was recently quoted at $1,193.30/1,193.50 per oz, down $18.95 on Tuesday’s close. It had hit a session low of $1,189 per oz.

The dollar index has been holding comfortably above 100. It recently traded 0.79% higher at 101.69 after a run of largely upbeat US data today.

Core durable goods at 1.0% beat the forecast 0.2% while durable goods and HPI were also better than expected at 4.8% and 0.6% respectively. But unemployment claims disappointed at 251,000 – a reading of 241,000 had been expected.

Investors will scrutinise the minutes of the previous FOMC meeting for hints on when and how quickly the Fed might raise interest rates. Market participants currently see a 95.4% chance of an increase in December, according to the CME’s FedWatch tool.

The post Gold price drops under $1,200/oz to lowest since Feb ’16 appeared first on The Bullion Desk.

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