Gold depreciates against the background of a stronger dollar, hopes for economic recovery
May 21 (Reuters) – Gold fell 1 percent on Thursday, down from a high of seven and a half years, amid stronger dollar and hopes for economic recovery, which reduced demand for defensive assets.
The spot price of gold fell by 1.03% to $1.730,9 per Troy ounce by 13:29 GMT.
The dollar index, which tracks the change in the dollar to a basket of major currencies, rose 0.4%, increasing the price of gold for holders of other currencies.
“Gold seems a little lost momentum after rising above $1.750, and the growth of the dollar today, it seems, does not help,” said OANDA analyst Craig Erlam.
“Nevertheless, a huge amount of monetary stimulus in the system, the need to preserve them for some time and inflation risk – all bullish factors for gold in the long term.”
Earlier this week, gold rose to its highest since October 2012, mainly due to fears of a global recession, the heightened contradictions between the U.S. and China and large-scale monetary and fiscal stimulus.
Now the attention of investors is directed to the data on applications for unemployment benefits in the U.S., which will be published later on Thursday.
Palladium fell by 4.02% to $2.017,11 ounce, after rising to a one-month peak on Wednesday.
The silver declined by 1.85% to $17,18 per ounce, platinum prices fell by 1.21% to $840,44.
(Brijesh Patel. Translate Vladimir Sadykov. Editor Marina Bobrova)