The gold price fell to a new 7 ½ month low during Asian trading as the U.S. dollar continued its recent rally. Easing tensions in the Ukraine also dampened gold safe haven status.
The dollar index which is a measure of the value of the U.S. dollar relative to a basket of foreign currencies, held close to a 14 month high as positive economic data increased expectations the Federal Reserve will raise rates sooner than expected. The gold price was also hurt after Ukrainian president Petro Poroshenko confirmed the majority of Russian troops in the east of the country had left the country. The gold price fell 0.5% to $1,234.49 per ounce.
Gold’s relative weakness also pushed down the other precious metals, silver in dollar terms fell to a new 14 month.
Gold denominated in UK pounds is currently trading at £761.33 per ounce, silver £11.43 per ounce, platinum £839.77 per ounce and palladium £510.88 per ounce.