Gold falls on strong dollar, global growth prospects
Thursday, 16 January 2014 00:00
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Reuters: Gold fell for a second straight session on Wednesday, retreating from one-month highs, as strong U.S. data and optimistic global growth prospects prompted a rally in the dollar and equities, detracting interest from the metal.
A disappointing U.S. jobs report last week stoked speculation the U.S. Federal Reserve would remain very cautious on the pace of its stimulus tapering. That gave a boost to gold, which hit a one-month peak of $1,255.00 an ounce in the previous session.
But strong U.S. retail sales on Tuesday, coupled with news the World Bank raised its forecast for global growth for the first time in three years, lifted the dollar and global shares to multi-month highs.
Spot gold eased 0.5 percent to $1,237.69 an ounce by 10.38 GMT. It posted a 0.7 percent loss on Tuesday.
U.S. gold futures for February delivery were down $7.80 to $1,237.10 an ounce.
