Gold below $1,300 as U.S. dollar strengthens
The gold price fell yesterday as stronger than expected U.S. GDP boosted the U.S. dollar.
U.S. GDP expanded at annualised rate of 4% for Q2 following a disappointing 2.9% contracted in Q1. Following the announcement the U.S. dollar rose against a basket of currencies to a 10 month high and gold price fell back 0.3% to $1,295.20 per ounce.
The dollar rose on expectations that Fed may now raise interest rates soon than expected.
The gold markets are also closely watching events in Gaza and the Ukraine as any further escalation in violence should boost the gold price.
Yesterday Israeli forces bombed Gaza’s only ...