Gold Silver Reports (GSR) – The Indian rupee is also near a record low against the dollar, Japan’s yen is at its weakest since mid-May and the value of the euro was eroded by the potential for a row over migration policy to fracture the German government…
The dollar received another boost on Monday from better than expected U.S. manufacturing data. Its increasing strength has helped to drive down spot gold by more than 8 percent from its April high of $1,365.23.
Spot gold was down 0.4 percent at $1,246.89 an ounce by 1413 GMT on Monday, close to last Thursday’s low of $1,245.32, the weakest since early December.
U.S. gold futures for August delivery were down 0.5 percent at $1,248.70 an ounce.
The stronger dollar has dragged down gold in combination with a rapid decrease in funds’ bets on higher prices and the selling of gold held by exchange-traded funds (ETFs), said Societe Generale analyst Robin Bhar.
“It does seem to be a perfect storm for gold,” he said.
Funds and money managers have cut their net long position on the Comex exchange to the lowest since January 2016, while gold holdings by ETFs tracked by Reuters are down 3.6 percent, or more than 2 million ounces, from late May. – Neal Bhai Reports (NBR)
