Gold Price: Gold slips as dollar gains, geopolitical risks ebb | International Business News – Times of India

NEW DELHI: Gold prices fell on Thursday, weighed down by a strong dollar after better-than-expected US retail sales data clouded hopes of a smaller rate hike, while safe-haven demand from latest geopolitical concerns also faded.
Spot gold was down 0.4% at $1,766.03 per ounce, as of 0713 GMT. US gold futures fell 0.4% to $1,768.70.
“Gold has had an excellent run, but having struggled to push above $1,790 it has succumbed to the strength of an oversold US dollar and seemingly entered a retracement,” said City Index analyst Matt Simpson.
“Gold can pull back further given the magnitude of its prior rally, which is likely to tempt profit-taking and entice a few countertrend bears around these highs.”
The dollar rose 0.2% against its rivals, making gold more expensive for other currency holders.
Data showed US retail sales increased more than expected in October, suggesting that consumer spending could help to underpin the economy in the fourth quarter and renewed expectations that the Federal Reserve will keep hiking rates.
San Francisco Fed President Mary Daly told CNBC it’s reasonable for the Fed to raise its policy rate to a 4.75%-5.25% range by early next year, and that pausing rate hikes is not part of the discussion.
Rising interest rates tend to dull bullion’s appeal as the metal pays no interest.
Gold prices hit a three-month peak of $1,786.35 per ounce on Tuesday on fears of escalation of the Ukraine crisis, after media reports said a Russian missile strike killed two people in Poland near the Ukraine border.
However, Poland’s president said on Wednesday a missile that hit his country was probably a stray Ukrainian defense projectile, dispelling fears that it came from Russia.
Elsewhere, spot silver dipped 1.1% to $21.23 per ounce. Platinum fell 0.3% to $1,003.53 and palladium was down 1.4% at $2,043.38.

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