Gold prices weakened in Tuesday trade to its lowest level in nine months, while the dollar strengthened ahead of the crucial U.S. inflation data release.
Spot gold prices fell to $1,722.36 per ounce during early trade on July 12, the lowest since Sept. 30. It later recovered and was trading at around $1,734 by 5:16 a.m. EDT. Gold futures were trading at $1,730 per ounce as of 09:14 a.m. EDT. Meanwhile, the U.S. dollar was trading near a new 20-year high hit on Monday, which made gold more expensive for investors holding other currencies.
“Gold seems to have found a few friends near $1,730 over the last couple of days, without ever seriously looking like it would reverse its recent selloff,” said OANDA senior analyst Jeffrey Halley, according to Reuters….