Gold touched its lowest since Sept. 20
U.S. dollar hits a fourmonth peak
The bigger issue for gold is competing assets, says analyst
US CPI due on Wednesday, PPI on Thursday
Nov 12 Reuters Gold prices dipped 1 to their lowest levels in nearly two months on Tuesday as the U.S. dollar soared ahead of economic data and comments from Federal Reserve officials that could shed light on the interestrate path under the Trump administration.
Spot gold was down 0.9 at 2,596.16 per ounce by 1057 GMT, after dropping 1 to hit its lowest since Sept. 20 at 2,589.59 earlier in the session. U.S. gold futures fell 0.6 to 2,602.40.
Dollar strength is weighing heavily on gold. Interestingly, the relationship seems to have dissipated for much of the year, but now it39;s back in force ever since the election, independent analyst Ross Norman said.
The dollar index rose to a fourmonth high, making the bullion more expensive.
The dollar is expected to benefit from some of Republican Presidentelect Donald Trump39;s policies that will likely keep U.S. interest rates relatively higher for longer, an environment negative for nonyielding gold.
The bigger issue for gold is competing assets and I think equity markets have performed extremely strongly post the election and you39;re likely to see money flowing out into those competing markets, Norman said.
Wall Street39;s main indexes notched record high closes on Monday, lifted by stocks expected to benefit from Trump39;s potential fiscal…